2008 Legislation
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HOUSE BILL NO. 680<br /> – Community Infrastructure Dist

HOUSE BILL NO. 680

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H0680...............................................by REVENUE AND TAXATION
COMMUNITY INFRASTRUCTURE DISTRICTS - Adds to existing law relating to
community infrastructure districts to provide for legislative purpose; to
provide a short title; to define terms; to provide for creation of
community infrastructure districts; to provide for organization of
districts; to provide for district powers; to provide for change in
district boundaries; to provide for amendments to the general plan; to
provide for finances; to provide for general obligation bonds; to provide
for elections; to establish limits on indebtedness and to provide for a
levy; to provide for special assessments and special assessment bonds; to
provide for revenue bonds; to provide for terms of bonds; to provide for
notice and conduct of elections; to provide for costs of administration; to
provide for annual financial statements and annual budget certification; to
provide for disclosure; to provide for district dissolution; to provide for
exemptions and exclusions; to provide for limitation of liability; and to
provide for appeal.

03/25    House intro - 1st rdg - to printing
    Rpt prt - to 2nd rdg
03/26    2nd rdg - to 3rd rdg
03/27    3rd rdg - PASSED - 50-18-2
      AYES -- Anderson, Andrus, Bayer, Bell, Bilbao, Black, Block, Bock,
      Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez, Clark, Collins,
      Crane, Eskridge, Hagedorn, Harwood, Henbest, Henderson, Kren, Lake,
      Loertscher, Marriott, Mathews, Mortimer, Nonini, Patrick, Pence,
      Raybould, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(02),
      Shepherd(08), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
      Stevenson, Thomas, Vander Woude, Wills, Wood(27), Mr. Speaker
      NAYS -- Barrett, Bedke, Boe, Chew, Durst, Hart, Jaquet, Killen, King,
      LeFavour, Luker, Moyle, Nielsen, Pasley-Stuart, Ringo, Thayn, Trail,
      Wood(35)
      Absent and excused -- Labrador, McGeachin
    Floor Sponsor - Clark
    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 - 29-4-2
      AYES -- Andreason, Bair, Bastian, Broadsword, Cameron, Coiner,
      Corder, Davis, Fulcher, Gannon(Gannon), Geddes, Goedde, Hammond,
      Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
      Malepeai(Sagness), McGee, McKague, Richardson, Schroeder, Siddoway,
      Stegner, Stennett
      NAYS -- Bilyeu, Burkett, Pearce, Werk
      Absent and excused -- Darrington, McKenzie
    Floor Sponsor - Hill
    Title apvd - to House - to enrol
04/02    Rpt enrol - Sp signed - Pres signed
04/03    To Governor
04/15    Governor signed
         Session Law Chapter 410
         Effective: 07/01/08

Bill Text




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

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 680

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO COMMUNITY INFRASTRUCTURE DISTRICTS; AMENDING TITLE 50, IDAHO CODE,
  3        BY THE ADDITION OF A NEW CHAPTER 31, TITLE 50, IDAHO CODE, TO PROVIDE  FOR
  4        LEGISLATIVE PURPOSE, TO PROVIDE FOR RELATIONSHIP TO OTHER LAWS AND A SHORT
  5        TITLE,  TO  DEFINE TERMS, TO PROVIDE FOR CREATION OF COMMUNITY INFRASTRUC-
  6        TURE DISTRICTS, TO PROVIDE FOR DISTRICT ORGANIZATION, TO PROVIDE FOR  DIS-
  7        TRICT POWERS, TO PROVIDE FOR CHANGE IN DISTRICT BOUNDARIES, TO PROVIDE FOR
  8        AMENDMENTS  TO  THE  GENERAL PLAN, TO PROVIDE FOR FINANCES, TO PROVIDE FOR
  9        GENERAL OBLIGATION BONDS, TO PROVIDE FOR ELECTIONS, TO ESTABLISH LIMITS ON
 10        INDEBTEDNESS AND TO PROVIDE FOR A LEVY, TO PROVIDE FOR SPECIAL ASSESSMENTS
 11        AND SPECIAL ASSESSMENT BONDS, TO PROVIDE FOR REVENUE BONDS, TO PROVIDE FOR
 12        ELECTIONS, TO PROVIDE FOR TERMS OF BONDS, TO PROVIDE FOR NOTICE  AND  CON-
 13        DUCT  OF  ELECTIONS, TO PROVIDE FOR COST OF ADMINISTRATION, TO PROVIDE FOR
 14        ANNUAL FINANCIAL STATEMENTS AND ANNUAL BUDGET  CERTIFICATION,  TO  PROVIDE
 15        FOR DISCLOSURE, TO PROVIDE FOR DISTRICT DISSOLUTION, TO PROVIDE FOR EXEMP-
 16        TIONS  AND  EXCLUSIONS, TO PROVIDE FOR LIMITATION OF LIABILITY, TO PROVIDE
 17        FOR APPEAL, TO PROVIDE FOR CONSISTENCY WITH OTHER STATE LAWS AND  TO  PRO-
 18        VIDE FOR SEVERABILITY.

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

 20        SECTION  1.  That Title 50, Idaho Code, be, and the same is hereby amended
 21    by the addition thereto of a NEW CHAPTER, to be known and designated as  Chap-
 22    ter 31, Title 50, Idaho Code, and to read as follows:

 23                                      CHAPTER 31
 24                        COMMUNITY INFRASTRUCTURE DISTRICT ACT

 25        50-3101.  PURPOSE,  RELATIONSHIP  WITH OTHER LAWS AND SHORT TITLE. (1) The
 26    purpose of this chapter is:
 27        (a)  To encourage the funding and construction of regional  community  in-
 28        frastructure  in  advance  of actual developmental growth that creates the
 29        need for such additional infrastructure;
 30        (b)  To provide a means for the advance payment of development impact fees
 31        established in chapter 82, title 67, Idaho Code, and the community  infra-
 32        structure that may be financed thereby; and
 33        (c)  To  create  additional  financial tools and financing mechanisms that
 34        allow new growth to more expediently pay for itself.
 35        (2)  Only community infrastructure to be publicly owned by this state or a
 36    political subdivision thereof may be financed pursuant to this chapter.
 37        (3)  A community infrastructure district may only be  formed  pursuant  to
 38    this  chapter  by a city in the city's incorporated area, or by a county in an
 39    area contained within a city's comprehensive plan with the city's consent.
 40        (4)  A community infrastructure district may  be  formed  only  after  (i)
 41    prior  review  and  approval  by  the governing body of each county or city in
 42    which the district is proposed to be located of a petition requesting the for-

                                       2

  1    mation of the district, and (ii) the necessary approvals for site  development
  2    under  the  local land use planning act, sections 67-6501 et seq., Idaho Code,
  3    and the planning and zoning ordinances of each county and city  in  which  the
  4    district  is proposed to be located have been obtained; provided however, that
  5    where there will be phased development, approvals obtained for the first phase
  6    of site development shall be sufficient for the initial creation and organiza-
  7    tion of the district. The formation of a district  pursuant  to  this  chapter
  8    shall  not  prevent the exercise by a county, city or other political subdivi-
  9    sion of any of its powers on the same basis as on all other  land  within  its
 10    jurisdiction.  Notwithstanding the formation of a district, the development of
 11    real  property  located within the district shall remain subject to the provi-
 12    sions of chapter 65, title 67, Idaho Code, and  the  applicable  planning  and
 13    zoning ordinances of the counties and cities in which the district is located.
 14    The  formation  of  a  district pursuant to this chapter shall not prevent the
 15    subsequent establishment of other districts or the improvement  or  assessment
 16    of land within the district by a county, city or other political subdivision.
 17        (5)  This  chapter  shall be known and cited as the "Community Infrastruc-
 18    ture District Act."

 19        50-3102.  DEFINITIONS. As used in this chapter, the following terms  shall
 20    have the meanings as stated:
 21        (1)  "Assessment area" means real property within the boundaries of a com-
 22    munity  infrastructure  district  that  is  the  subject of a specific special
 23    assessment as set forth in this chapter.
 24        (2)  "Community infrastructure" means improvements that directly or  indi-
 25    rectly benefit the district. Community infrastructure excludes public improve-
 26    ments  fronting  individual  single family residential lots.  Community infra-
 27    structure includes planning, design, engineering, construction, acquisition or
 28    installation of such infrastructure,  including  the  costs  of  applications,
 29    impact fees and other fees, permits and approvals related to the construction,
 30    acquisition  or  installation  of  such infrastructure, and incurring expenses
 31    incident to and reasonably necessary to carry out the purposes of  this  chap-
 32    ter.  Community  infrastructure  includes  all public facilities as defined in
 33    section 67-8203(24), Idaho Code, and,  to  the  extent  not  already  included
 34    within the definition in section 67-8203(24), Idaho Code, the following:
 35        (a)  Highways,  parkways, expressways, interstates, or other such designa-
 36        tion, interchanges, bridges, crossing  structures,  and  related  appurte-
 37        nances;
 38        (b)  Public  parking facilities, including all areas for vehicular use for
 39        travel, ingress, egress and parking;
 40        (c)  Trails  and  areas  for  pedestrian,  equestrian,  bicycle  or  other
 41        nonmotor vehicle use for travel, ingress, egress and parking;
 42        (d)  Public safety facilities;
 43        (e)  Acquiring interests in real property for community infrastructure;
 44        (f)  Financing costs related to the construction of items listed  in  this
 45        subsection; and
 46        (g)  Impact fees.
 47        (3)  "Community  infrastructure segment" means a separate or a discernible
 48    portion of a construction contract attributable to community infrastructure.
 49        (4)  "Debt service" means the principal of, interest on  and  premium,  if
 50    any,  on the bonds, when due, whether at maturity or prior redemption and fees
 51    and costs of registrars, trustees, paying agents or other agents necessary  to
 52    handle the bonds and the costs of credit enhancement or liquidity support.
 53        (5)  "District"  means a community infrastructure district formed pursuant
 54    to this chapter. A district shall only include contiguous property at the time

                                       3

  1    of formation. Land that is connected by only a shoestring  or  strip  of  land
  2    which  comprises  a  railroad  or highway right-of-way shall not be considered
  3    contiguous for the purposes of this chapter. Subsequent to a district's forma-
  4    tion, a district may include noncontiguous property but only as the same shall
  5    be specifically determined and authorized by the district board in its discre-
  6    tion and pursuant to section 50-3106.
  7        (6)  "District board" means the board of directors of the district.
  8        (7)  "District development agreement" means an agreement between  a  prop-
  9    erty  owner  or developer, the county or city, any other political subdivision
 10    of the state, and/or the district.  A district development agreement shall  be
 11    used to establish obligations of the parties to the agreement relating to dis-
 12    trict  financing and development, including: intergovernmental agreements; the
 13    ultimate public ownership of the community infrastructure financed by the dis-
 14    trict; the understanding of the parties with regard to future  annexations  of
 15    property into the district; the total amount of bonds to be issued by the dis-
 16    trict  and the property taxes and special assessments to be levied and imposed
 17    to repay the bonds and the provisions regarding the disbursement of bond  pro-
 18    ceeds;  the  financial  assurances, if any, to be provided with respect to the
 19    bonds; impact and other fees imposed by  governmental  authorities,  including
 20    credit,  prepayment  and/or reimbursement with respect thereto; and other mat-
 21    ters relating to the community infrastructure, such as construction,  acquisi-
 22    tion, planning, design, inspection, ownership and control. A district develop-
 23    ment  agreement shall be in addition to and shall not supplant any development
 24    agreement entered into pursuant to section 67-6511A, Idaho Code,  pursuant  to
 25    which  a  governing body may require or permit as a condition of rezoning that
 26    an owner or developer make a written commitment concerning the use or develop-
 27    ment of the subject parcel.
 28        (8)  "General  plan"  means  the  general  plan   described   in   section
 29    50-3103(1), Idaho Code, as the plan may be amended from time to time.
 30        (9)  "Governing  body" means the county commissioners or city council that
 31    by law is constituted as the governing body of the county or city in which the
 32    district is located.  Reference in this chapter to "governing body or  bodies"
 33    shall  mean  the governing body or bodies of each county and city in which the
 34    district is located.
 35        (10) "Owner" means the person listed as the owner of real property  within
 36    the district or a proposed district on the current property rolls in effect at
 37    the  time that the action, proceeding, hearing or election has begun; provided
 38    however, that if a person listed on the property rolls is no longer the  owner
 39    of  real  property  within the district or a proposed district and the name of
 40    the successor owner becomes known and is verified by recorded  deed  or  other
 41    similar evidence of transfer of ownership, the successor owner shall be deemed
 42    to be the owner for the purposes of this chapter.
 43        (11) "Market  value  for assessment purposes" means the amount of the last
 44    preceding equalized assessment of all taxable property and excludes all  prop-
 45    erty  exempt from taxation pursuant to section 63-602G, Idaho Code, within the
 46    community infrastructure district on the tax rolls completed and available  as
 47    of the date of approval in the district bond issuance.
 48        (12) "Person"  means  any  entity,  individual,  corporation, partnership,
 49    firm, association, limited liability company, limited  liability  partnership,
 50    trust  or  other such entities as recognized by the state of Idaho.  A "person
 51    in interest" is any person who is a qualified elector in the district, who  is
 52    an  owner  of real property in the district or who is a real property taxpayer
 53    in the district.
 54        (13) "Qualified elector" means a person who possesses all of the  qualifi-
 55    cations required of electors under the general laws of the state of Idaho and:

                                       4

  1        (a)  Resides  within  the  boundaries of a district or a proposed district
  2        and who is a qualified elector. For purposes of this chapter, such elector
  3        shall also be known as a "resident qualified elector"; or
  4        (b)  Is an owner of real property that is located within the district or a
  5        proposed district, who is not a resident qualified elector  as  set  forth
  6        above.  For  purposes of this chapter, such elector shall also be known as
  7        an "owner qualified elector."
  8        (14) "Special assessment" means an assessment imposed upon  real  property
  9    located within an assessment area for a specific purpose and of a special ben-
 10    efit  to  the  affected property, collected and enforced in the same manner as
 11    property taxes, that may be apportioned according to the  direct  or  indirect
 12    special  benefits  conferred upon the affected property, as well as any or any
 13    combination of the following: acreage, square footage, front footage, the cost
 14    of providing community infrastructure for the affected property, or any  other
 15    reasonable method as determined by the district board.

 16        50-3103.  CREATION OF DISTRICT. (1) The process for the creation and orga-
 17    nization  of a community infrastructure district shall be initiated by a peti-
 18    tion signed by not less than two-thirds (2/3) of the district residents or  by
 19    all of the owners of all the lands located in the proposed district. The peti-
 20    tion shall be filed with the clerk of the governing body in which the proposed
 21    district  will be located. If the proposed district will be located within two
 22    (2) or more counties and/or cities, a petition conforming to the  requirements
 23    of this section shall be filed with the clerk of each jurisdiction's governing
 24    body.  The petition shall state the name of the proposed district and the pur-
 25    pose for which it is formed, state that the formation of  the  district  shall
 26    entitle  the  district  to impose special assessments, levy property taxes and
 27    impose fees or charges to pay the cost of providing  services,  and  shall  be
 28    accompanied  by  a  map  depicting  the boundaries of the proposed district, a
 29    legal description of the proposed district and a copy of the proposed  general
 30    plan. The general plan shall describe or identify the community infrastructure
 31    to  be  financed  by the district, the locations of the infrastructure and the
 32    estimated cost thereof, the proposed financing  methods  and  the  anticipated
 33    special  assessments, tax levies or other charges, the approvals obtained pur-
 34    suant to section 50-3101(3), Idaho Code, and  may  include  possible  alterna-
 35    tives,  modifications  or  substitutions  concerning  locations, improvements,
 36    financing methods and other information provided  in  the  general  plan.  The
 37    petition shall also include copies of any proposed district development agree-
 38    ment.  The  petition, together with all maps and other papers filed therewith,
 39    shall be open to public inspection in the office of the clerk in  each  county
 40    or  city  in  which  the  petition is filed, during such business hours as the
 41    clerk may direct.
 42        (2)  Upon the filing of a petition, the governing body shall  give  notice
 43    of the filing of the petition and of the time and place set for a public hear-
 44    ing  on  the  petition, which hearing shall be at a regular or special meeting
 45    held within not less than thirty (30) days nor  more  than  ninety  (90)  days
 46    after the date of the filing of the petition. A notice of the time of the pub-
 47    lic hearing shall be published by the governing body twice, the first time not
 48    less  than  twelve (12) days prior to the hearing and the second time not less
 49    than five (5) days prior to the hearing, in a newspaper of general circulation
 50    in each county or city in which the proposed district will be located. A  copy
 51    of  such  notice shall also be mailed to each district resident and each owner
 52    of real property in the district if known or  such  owner's  agent  if  known,
 53    addressed  to  such  person  at his or her post office address if known or, if
 54    unknown, to a post office in the county or city where the district is located.

                                       5

  1    Ownership of real property shall be determined as of the date of the  adoption
  2    of  the  resolution ordering the hearing. The notice shall state that a commu-
  3    nity infrastructure district is proposed to be  formed,  giving  the  proposed
  4    boundaries  thereof,  and that any person who is a resident of or a real prop-
  5    erty taxpayer within the proposed district may, on the date fixed for the pub-
  6    lic hearing, appear and offer any testimony pertaining to the formation of the
  7    district and the proposed boundaries thereof. If the district will be  located
  8    within  two  (2)  or more counties and/or cities, the governing bodies of such
  9    counties and/or cities shall coordinate their efforts and shall either hold  a
 10    public  hearing  in each county or city in which the proposed district will be
 11    located, or hold a single public meeting in such county or city as the govern-
 12    ing bodies shall unanimously agree. The  notice  shall  also  state  that  any
 13    political  subdivision  of  this  state within whose jurisdiction the proposed
 14    district will be located, including, without limitation, a highway district, a
 15    school district, a fire district or an ambulance district, may,  on  the  date
 16    fixed  for  the  public  hearing, appear and offer testimony pertaining to the
 17    formation of the district and the proposed boundaries thereof.  After  hearing
 18    and  considering  any and all of the testimony given, the governing body shall
 19    thereupon approve a resolution either denying the  petition  or  granting  the
 20    same  and,  if granting the same, shall fix and describe in the resolution the
 21    boundaries of the proposed district and order the formation of  the  same.   A
 22    resolution granting the petition may also include the approval of any district
 23    development  agreement  that  has  been  approved by the governing body in the
 24    process of considering and approving  the  formation  of  the  district.   The
 25    boards  of  county  commissioners  and/or the city councils, as such governing
 26    bodies, are hereby specifically authorized to act in a joint manner  for  such
 27    purposes.
 28        (3)  Whenever  a  petition shall be filed as provided for in this section,
 29    the petitioner or petitioners shall deposit with each  governing  body  a  sum
 30    sufficient  to  defray  the  costs of publication and mailing of notice of the
 31    public hearing. In the event the district is formed, said petitioner or  peti-
 32    tioners  shall  be  entitled to be reimbursed such sum from the district, as a
 33    district formation cost related to the community infrastructure, from the dis-
 34    trict when moneys are available to the district. The  amount  required  to  be
 35    paid  under  this  subsection  shall  be determined by each governing body and
 36    deposited before publication of the notice.
 37        (4)  The governing body may charge the petitioner or petitioners a reason-
 38    able fee for the governing body to retain outside advisors to assist the  gov-
 39    erning  body  in  its  consideration  of the formation of the district. In the
 40    event the district is formed, the petitioner or petitioners shall be  entitled
 41    to  be  reimbursed  such  fee  from the district, as a district formation cost
 42    related to the community infrastructure, when moneys are available to the dis-
 43    trict.

 44        50-3104.  DISTRICT ORGANIZATION. (1) If the petition for formation of  the
 45    district  is  granted, the district shall comply with the filing and recording
 46    requirements of section 63-215, Idaho Code, and shall also cause a copy of the
 47    applicable resolution to be delivered to the county assessor of each county in
 48    which the district is located, cause a copy of the applicable resolution to be
 49    recorded with the county clerk  in  each  county  in  which  the  district  is
 50    located,  and  cause  a copy of the applicable resolution to be filed with the
 51    state tax commission.
 52        (2)  Members of the governing body or bodies  at  the  time  of  formation
 53    shall  serve as the district board. If the district is located entirely within
 54    the boundaries of a city, three (3) members of the city council chosen by  the

                                       6

  1    city  council  shall  serve  as the district board. If the district is located
  2    entirely within the boundaries of a county and outside the boundaries  of  any
  3    city,  the county commissioners of the county in which the district is located
  4    shall serve as the district board. If  the  district  is  located  within  the
  5    jurisdiction of more than one (1) governing body, two (2) members of each gov-
  6    erning body shall be appointed by that governing body to serve on the district
  7    board and, in addition, the governing body within whose jurisdiction the larg-
  8    est land area of the district is located shall appoint another member from its
  9    governing body to serve as an additional member of the district board, so that
 10    the  district  board will always be comprised of an odd number of members. For
 11    purposes of determining which jurisdiction has such  largest  land  area,  the
 12    land area in the district that is within the incorporated city limits shall be
 13    considered  as being the land area of the city, and shall not be considered as
 14    part of the land area of the county in which the city is located. If  an  area
 15    is  added to the district pursuant to section 50-3106(2), Idaho Code, and such
 16    area is located in a city or county not already represented  on  the  district
 17    board,  or  if the addition of such area changes the jurisdiction in which the
 18    largest land area of the district is located, the membership of  the  district
 19    board,  at  the time of addition of such area, shall be adjusted in conformity
 20    with the foregoing. If an area is deleted from the district pursuant  to  sec-
 21    tion  50-3106(1), Idaho Code, and, as a result, a county or city no longer has
 22    area within the district, or such deletion changes the jurisdiction  in  which
 23    the  largest  land area of the district is located, the membership of the dis-
 24    trict board, at the time of deletion of such area, shall be adjusted  in  con-
 25    formity  with the foregoing. If an area is annexed or deannexed by a city and,
 26    as a result, the jurisdiction of a county or city is changed,  the  membership
 27    of  the district board at the time of such annexation or deannexation shall be
 28    adjusted in conformity with the foregoing. The boards of county  commissioners
 29    and  the  city  councils,  as  such  governing bodies, are hereby specifically
 30    authorized to act in a joint manner for such purposes.
 31        (3)  Within thirty (30) days after the date  of  the  resolution  ordering
 32    formation  of  the district, and annually thereafter, the district board shall
 33    meet and elect a chairman and vice-chairman to act as the officers of the dis-
 34    trict board. The district board shall, unless otherwise agreed to by a  major-
 35    ity  of  the  board,  meet in the county or city within which the largest land
 36    area of the district  is  located.  The  district  shall  keep  the  following
 37    records, which shall be open to public inspection:
 38        (a)  Minutes of all meetings of the district board;
 39        (b)  All resolutions;
 40        (c)  Accounts showing all moneys received and disbursed;
 41        (d)  The annual budget; and
 42        (e)  All other records required to be maintained by law.
 43        (4)  The  district  manager shall be the manager or equivalent of the city
 44    or county, the district treasurer shall  be  the  treasurer  of  the  city  or
 45    county,  the district clerk shall be the district clerk of the city or county,
 46    respectively, unless the district board engages an outside firm to perform the
 47    tasks of the district's manager, treasurer and clerk as well as  other  duties
 48    as may be prescribed by the district board.
 49        (5)  The  district  manager shall have charge and supervision of the daily
 50    operations of the district. The district manager may hire or otherwise  employ
 51    and terminate the employment of such persons, including professional, supervi-
 52    sory and clerical employees, as may be necessary and authorized by the board.
 53        (6)  The  treasurer of the district shall have such duties as the district
 54    board may prescribe, together with the duty to keep account with the district;
 55    to place to the credit of the district all moneys received by him or her  from

                                       7

  1    the  collection  of  special assessments, taxes or from any other sources, and
  2    all other moneys belonging to the district, and to pay over all moneys belong-
  3    ing to the district on legally drawn warrants or orders of the district board.
  4        (7)  The clerk of the district shall have  such  duties  as  the  district
  5    board  may prescribe, together with the duty to conduct district elections and
  6    to prepare and distribute legal notices.
  7        (8)  The district shall be separate and apart from any county or city. The
  8    members of the district board, when serving in their official capacity as mem-
  9    bers of the district board, shall act on behalf of the  district  and  not  as
 10    members of a board of county commissioners or as members of a city council.
 11        (9)  The district board shall administer in a reasonable manner the imple-
 12    mentation of the general plan.
 13        (10) The district shall exist until dissolved pursuant to section 50-3116,
 14    Idaho Code.

 15        50-3105.  DISTRICT POWERS. (1) A district formed pursuant to this chapter,
 16    although  a  political subdivision of this state, is not a governmental entity
 17    of general purposes and powers, but is a special  limited  purposes  district,
 18    with  powers  only  as  permitted under this chapter, which powers include the
 19    power to finance community infrastructure consistent  with  the  general  plan
 20    and, in implementing the general plan, to:
 21        (a)  Enter  into contracts and expend moneys for any community infrastruc-
 22        ture purposes and/or district operations;
 23        (b)  Enter into intergovernmental agreements as provided for  in  sections
 24        67-2326 through 67-2333, Idaho Code;
 25        (c)  Enter into district development agreements;
 26        (d)  Acquire  interests  in real property and personal property for commu-
 27        nity infrastructure, within or without the district, and  sell,  dedicate,
 28        lease  or  otherwise dispose of district property if the sale, dedication,
 29        lease or conveyance is not a violation of the terms  of  any  contract  or
 30        bond covenant of the district;
 31        (e)  Plan,  design, engineer, acquire, construct and install community in-
 32        frastructure, including acquiring,  converting,  renovating  or  improving
 33        existing facilities;
 34        (f)  Employ and establish and pay compensation for staff, counsel and con-
 35        sultants;
 36        (g)  Reimburse a county, city or other political subdivision of this state
 37        for  staff  and  consultant services supplied by the county, city or other
 38        political subdivision;
 39        (h)  Accept gifts or grants and incur and repay loans  for  any  community
 40        infrastructure;
 41        (i)  Enter  into agreements with owners concerning the advance of money by
 42        owners for community infrastructure or the granting of  real  property  by
 43        the owners for community infrastructure;
 44        (j)  Establish,  impose  and  collect  or  cause  to  be collected special
 45        assessments on real property located within an assessment area of the dis-
 46        trict and, in conjunction with the imposition of such assessments, set and
 47        collect or cause to be collected administrative fees for community  infra-
 48        structure;
 49        (k)  Levy property taxes on real property located within the district and,
 50        in conjunction with the levy of such taxes, set and collect or cause to be
 51        collected administrative fees for community infrastructure;
 52        (l)  Incur  expenses  of the district incident to and reasonably necessary
 53        to implement the general plan, and pay the same, including the  financial,
 54        legal and administrative costs of the district;

                                       8

  1        (m)  Borrow money and incur indebtedness and evidence the same by certifi-
  2        cates,  notes,  bonds  or debentures, and enter into contracts, agreements
  3        and trust indentures to obtain credit enhancement or liquidity support for
  4        its bonds and process the issuance, registration, transfer and payment  of
  5        its bonds and the disbursement and investment of proceeds of its bonds;
  6        (n)  Use  public easements and rights-of-way in or across public property,
  7        roadways, highways, streets or other thoroughfares and other public  ease-
  8        ments  and  rights-of-way, whether in or out of the geographical limits of
  9        the district, county or city; and
 10        (o)  Sue and be sued and prosecute and defend, at law or in equity.
 11        (2)  Community infrastructure other than personalty, may be  located  only
 12    in  or  on lands, easements or rights-of-way publicly owned by this state or a
 13    political subdivision thereof.
 14        (3)  An agreement pursuant to subsection (1) of this section  may  include
 15    agreements  to  repay  all or part of such advances, fees and charges from the
 16    proceeds of bonds if issued,  or from advances,  fees  and  charges  collected
 17    from other owners or users or those having a right to use any community infra-
 18    structure.  A person does not have authority to compel the issuance or sale of
 19    the  bonds of the district or the exercise of any taxing power of the district
 20    to make repayment under any agreement.
 21        (4)  With respect to goods, services or construction to  be  paid  for  or
 22    financed pursuant to this chapter, the district, as a political subdivision of
 23    this  state,  shall  comply  with  all applicable procurement statutes of this
 24    state, including section 67-2320, Idaho Code, and chapter 28, title 67,  Idaho
 25    Code.

 26        50-3106.  CHANGE  IN  DISTRICT BOUNDARIES -- AMEND GENERAL PLAN. (1) After
 27    district formation, an area may be deleted from the  district  only  following
 28    notice  and  hearing in the manner prescribed for the formation hearing, adop-
 29    tion of a resolution of intention to do so by the district board, and by voter
 30    approval by the qualified electors as provided in section 50-3112, Idaho Code.
 31    Lands within the district that are subject to the lien of property taxes, spe-
 32    cial assessments or other charges imposed pursuant to this chapter  shall  not
 33    be  deleted  from the district while there are bonds outstanding that are pay-
 34    able by such taxes, assessments or charges.
 35        (2)  After district formation, an area may be added to the  district  upon
 36    adoption  of  a resolution of intention to do so by the district board and the
 37    approvals of all the owners of the lands to be added and the governing body of
 38    each county or city within which such lands are located,  subject  to  notice,
 39    hearing  and adoption of a resolution in the manner as required for the forma-
 40    tion of a district.
 41        (3)  If an area is deleted or added under subsection (1) or  (2)  of  this
 42    section,  the district board shall attend to the recording and filing require-
 43    ments set forth in section  63-215, Idaho Code, and shall also cause a copy of
 44    the applicable resolution to be delivered  to  the  county  assessor  of  each
 45    county  in which the district is located, cause a copy of the applicable reso-
 46    lution to be recorded with the county clerk in each county in which  the  dis-
 47    trict  is  located,  and cause a copy of the applicable resolution to be filed
 48    with the state tax commission.
 49        (4)  The district board, following notice and hearing in the  manner  pre-
 50    scribed  for  the  formation hearing, may amend the general plan in any manner
 51    that it determines will not substantially reduce the benefits to  be  received
 52    by any land within the district from the community infrastructure upon comple-
 53    tion of the work to be performed under the general plan.  No election shall be
 54    required for the purposes of this subsection.

                                       9

  1        50-3107.  FINANCES. (1) Only community infrastructure to be publicly owned
  2    by  this  state or a political subdivision thereof may be financed pursuant to
  3    this chapter.
  4        (2)  Community infrastructure to be financed or acquired, or  publicly  or
  5    privately  constructed  pursuant  to  this  chapter  shall  be  subject to the
  6    required bidding procedures for any Idaho public agency.
  7        (3)  Community infrastructure shown in the general plan  may  be  financed
  8    from the following sources of revenue:
  9        (a)  Proceeds received from the sale of bonds of the district;
 10        (b)  Moneys of a county or city contributed to the district;
 11        (c)  Property taxes or special assessments;
 12        (d)  State or federal grants or contributions;
 13        (e)  Private contributions;
 14        (f)  User, landowner and other fees and charges;
 15        (g)  Proceeds of loans or advances; and
 16        (h)  Any other moneys available to the district by law.
 17        (4)  The  amount  of  indebtedness  evidenced  by general obligation bonds
 18    issued pursuant to section  50-3108,  Idaho  Code,  special  assessment  bonds
 19    issued  pursuant to section 50-3109, Idaho Code, and revenue bonds issued pur-
 20    suant to section 50-3110, Idaho Code, shall not exceed the estimated  cost  of
 21    the  community  infrastructure  to be financed with such bonds, plus all costs
 22    connected with the issuance and sale of such bonds, including formation costs,
 23    credit enhancement and liquidity support fees and costs. The  total  aggregate
 24    outstanding  principal  amount of general obligation bonds and other indebted-
 25    ness for which the full faith and credit of the district are pledged shall not
 26    affect the general obligation bonding capacity of any county or city in  which
 27    the district is located.
 28        (5)  Bonds  issued by a district shall not be a general obligation of this
 29    state or any political subdivision thereof, including any county  or  city  in
 30    which  the  district is located and shall not pledge the full faith and credit
 31    of this state or any political subdivision thereof, including  any  county  or
 32    city in which the district is located.

 33        50-3108.  GENERAL  OBLIGATION  BONDS  --  ELECTION -- MAXIMUM INDEBTEDNESS
 34    ALLOWED -- LEVY. (1) After district formation,  whenever  the  district  board
 35    shall deem it advisable to issue general obligation bonds of the district, the
 36    district  board  shall  provide therefor by resolution, which resolution shall
 37    specify and set  forth  the  community  infrastructure  and  other  costs  and
 38    expenses approved by the district board consistent with the general plan to be
 39    financed  with  the  bonds, and make provision for the collection of an annual
 40    tax sufficient to pay the interest on the bonds as it falls due, and  also  to
 41    constitute a sinking fund for the payment of the principal thereof as required
 42    by the constitution and laws of the state of Idaho.
 43        (2)  The  resolution  shall  also provide for holding an election, held in
 44    compliance with section 50-3112, Idaho Code, to submit to the qualified  elec-
 45    tors of the district the question of authorizing the district to issue general
 46    obligation  bonds  of  the district to provide money for said community infra-
 47    structure consistent with the general plan.  The ballot used in such  election
 48    shall  be  in form substantially as follows: "In favor of issuing bonds to the
 49    amount of .......... dollars for the purpose stated in  Resolution  No.  ...,"
 50    and  "Against issuing bonds to the amount of ......... dollars for the purpose
 51    stated in Resolution No. ...".
 52        (3)  If two-thirds (2/3) of the qualified electors at such election assent
 53    to the issuing of the bonds and the incurring of the indebtedness thereby cre-
 54    ated for the purpose aforesaid, the district board shall thereupon be  author-

                                       10

  1    ized  to issue and create such indebtedness in the manner and for the purposes
  2    specified in said resolution, and the bonds shall be issued and  sold  in  the
  3    manner  provided  by the laws of the state of Idaho, and the district board by
  4    further resolution shall be entitled to issue and sell the bonds in series  or
  5    divisions  up  to the authorized amount without the further vote of the quali-
  6    fied electors, and to issue and sell such bonds at  such  times  and  in  such
  7    amounts  as  the district board deems appropriate to carry out a community in-
  8    frastructure project or projects in phases; provided however, that before  any
  9    issuance of the bonds, including issuance in series or divisions and, in addi-
 10    tion  to  such  other determinations made by the district board as it may deem
 11    reasonable and prudent, the district board shall also determine  whether  rea-
 12    sonable  financial  assurance for the payment of the debt service on the bonds
 13    through  additional  collateral,  payment  guarantee  or  otherwise  shall  be
 14    required from a developer.  The developer shall  be  consulted  and  shall  be
 15    given  a reasonable period of time within which to appear, either in person or
 16    in writing, and respond to any proposed financial  assurance.   If,  following
 17    such  developer's  response,  the  district  board  determines that reasonable
 18    financial assurance shall be required, the district board  shall  specify  the
 19    type and amount of the financial assurance required in its resolution.
 20        (4)  In  no event shall the aggregate outstanding principal amount of gen-
 21    eral obligation bonds and any other indebtedness for which the full faith  and
 22    credit  of  the district are pledged exceed twelve percent (12%) of the actual
 23    or adjusted market value for assessment purposes on all taxable real  property
 24    within  the  district as such valuation existed on December 31 of the previous
 25    year.
 26        (5)  After the bonds are issued, the district shall enter in its minutes a
 27    record of the bonds sold and their number and  dates  and  shall  periodically
 28    collect the pledged revenues to pay the debt service on the bonds when due.
 29        (6)  Bond  proceeds received by the district shall be held in a segregated
 30    account and shall be disbursed therefrom only for:
 31        (a)  The payment of community infrastructure and/or community  infrastruc-
 32        ture segments approved by the district board and actually completed; or
 33        (b)  For the purpose of reimbursing actually paid expenditures relating to
 34        community  infrastructure as approved by the district board; provided how-
 35        ever, that lien releases with respect to the payment made must be obtained
 36        from the underlying providers of labor, work, services or materials  as  a
 37        condition to such payment; or
 38        (c)  For  the  payment  or  reimbursement of governmentally imposed impact
 39        fees as approved by the district board.
 40        (7)  Completion of community infrastructure may be phased and payment made
 41    pursuant to a draw schedule. Bond proceeds shall be expended on the  community
 42    infrastructure within three (3) years after issuance. Prior to issuance of the
 43    bonds,  the district board shall determine that such bond proceeds can reason-
 44    ably be expended within that time.
 45        (8)  Each year, prior to the time for  the  certification  required  under
 46    section 50-3114, Idaho Code, the district board shall levy a tax upon all tax-
 47    able  real  property  within the district, sufficient, together with any money
 48    from the sources described in section 50-3107(3), Idaho Code, to pay debt ser-
 49    vice on the bonds when due. The levy shall be made by resolution entered  upon
 50    the  minutes  of  the district board, and it shall be the duty of the clerk of
 51    the district, immediately after entry of the resolution  in  the  minutes,  to
 52    transmit to the board of county commissioners in each county in which the dis-
 53    trict is located the certification required under section 50-3114, Idaho Code.
 54    Such  tax  levied shall then be collected and accounted for at the time and in
 55    the form and manner as other taxes are collected and accounted for  under  the

                                       11

  1    laws  of this state. Moneys derived from the levy of property taxes to pay the
  2    debt service on the bonds shall be kept separately from  other  funds  of  the
  3    district.  A  district's levy of property taxes shall constitute a lien on all
  4    taxable real property within the district.
  5        (9)  The district may issue and sell refunding  bonds  to  refund  general
  6    obligation  bonds  of  the district authorized by this section.  The principal
  7    amount of the refunding bonds may be more or less than the principal amount of
  8    the bonds being refunded, provided that the proceeds of  the  refunding  bonds
  9    are used only for refunding purposes and payment of the costs thereof, and the
 10    total  obligation  of the district is not increased, that is, if the amount of
 11    the refunding bonds is more than the  principal  amount  of  the  bonds  being
 12    refunded,  issuance  of the refunding bonds will result in a net present value
 13    savings to the district.  No election shall be required in connection with the
 14    issuance and sale of such refunding bonds.  Refunding bonds issued pursuant to
 15    this section shall have a final maturity date no later than the final maturity
 16    date of the bonds being refunded.

 17        50-3109.  SPECIAL ASSESSMENTS -- BONDS. (1) After district formation, upon
 18    the submission of a petition signed by all the owners of all the lands located
 19    in a proposed assessment area, or whenever the district board  shall  deem  it
 20    advisable, the district board shall adopt a resolution ordering that a hearing
 21    be  held  to determine whether a special assessment should be imposed and spe-
 22    cial assessment bonds be issued to provide money for community  infrastructure
 23    consistent with the general plan and the exercise by the district board of any
 24    of its powers under section 50-3105, Idaho Code.
 25        (2)  Notice  of  the  hearing  shall  be posted in three (3) public places
 26    within the boundaries of the district not less than thirty  (30)  days  before
 27    the  hearing.  Notice  of the hearing shall also be published twice, the first
 28    time not less than twelve (12) days prior to the hearing and the  second  time
 29    not  less  than  five (5) days prior to the hearing, in a newspaper of general
 30    circulation in each county or city in which the district is located. A copy of
 31    such notice shall also be mailed to each district resident and each  owner  of
 32    real  property  in  the  district  if  known  or  such owner's agent if known,
 33    addressed to such person at his or her post office address  if  known  or,  if
 34    unknown, to a post office in the county or city where the district is located.
 35    Ownership  of real property shall be determined as of the date of the adoption
 36    of the resolution ordering the hearing.  The notice shall include the  follow-
 37    ing:
 38        (a)  A  description of the real property to be included within the assess-
 39        ment area;
 40        (b)  A description of the method by which the amount of the proposed  spe-
 41        cial    assessment  will  be determined for each class of real property to
 42        which the special assessment is proposed to apply, in sufficient detail to
 43        enable the owner of the affected parcel to determine  the  amount  of  the
 44        special assessment;
 45        (c)  A  description  of  the  community infrastructure to be financed with
 46        special assessment bonds or revenues; and
 47        (d)  A statement that any person affected by the proposed special  assess-
 48        ment may object in writing or in person at the hearing.
 49        (3)  If,  after  the hearing, the district board finds that it will be for
 50    the best interest of the district and the real property within the  assessment
 51    area  that  the  aggregate  fair  market value of the real property within the
 52    assessment area, including the value of the  community  infrastructure  to  be
 53    financed  or paid for with the special assessments, and the infrastructure for
 54    which performance bonds or other financial assurances have been received,   is

                                       12

  1    at least three (3) times the aggregate principal amount of the special assess-
  2    ment  bonds as determined by an MAI appraisal in form and substance acceptable
  3    to the district board, the district board shall adopt a  resolution  approving
  4    the  imposition  of the special assessment and, also by resolution, shall pre-
  5    pare a form of assessment roll numbering each assessment, giving the name,  if
  6    known,  of  the owner of each lot or parcel of real property assessed, showing
  7    the amount chargeable to each such lot or parcel, and finding that  each  such
  8    lot  or  parcel is benefited to the amount of assessment imposed thereon. Such
  9    resolution shall be the final determination of the  regularity,  validity  and
 10    correctness  of the assessment roll, of each assessment contained therein, and
 11    of the amount thereof imposed on each such lot or parcel. Special  assessments
 12    may  be  prepaid and permanently satisfied in whole or in part at any point in
 13    time. Prepayment of special assessments shall be paid in cash to the  district
 14    in  the  following  manner:  (i) the interest on such portion to the next date
 15    special assessment bonds may be  redeemed,  plus  (ii)  the  unpaid  principal
 16    amount of such portion rounded up to the next highest multiple of one thousand
 17    dollars  ($1,000),  plus  (iii)  any  premium due on such redemption date with
 18    respect to such portion, plus (iv) any administrative or other fees charged by
 19    the district with respect thereto, less (v) the amount by  which  any  reserve
 20    fund  associated  with the special assessment may be reduced on the redemption
 21    date as a result of such prepayment.
 22        (4)  Special assessment bonds approved at the hearing shall be  issued  in
 23    the  manner provided by the laws of the state of Idaho, and the district board
 24    by further resolution shall be entitled to issue and sell the bonds in  series
 25    or divisions up to the authorized amount without further hearing, and to issue
 26    and  sell  such  bonds at such times and in such amounts as the district board
 27    deems appropriate to carry out a community infrastructure project or  projects
 28    in  phases.  Bond  proceeds  shall be expended on the community infrastructure
 29    within three (3) years after issuance.  Prior to issuance of  the  bonds,  the
 30    district  board  shall  determine  that  such  bond proceeds can reasonably be
 31    expended within such time.
 32        (5)  After the bonds are issued, the district board  shall  enter  in  its
 33    minutes a record of the bonds sold and their numbers and dates and shall peri-
 34    odically  collect  the  pledged  revenues to pay the debt service on the bonds
 35    when due.
 36        (6)  Each year, prior to the time for  the  certification  required  under
 37    section 50-3114, Idaho Code, the district board shall impose a special assess-
 38    ment  upon  the  real property within the assessment area of the district that
 39    will be subject to the special assessment sufficient, together with any moneys
 40    from the sources described in section 50-3107(3), Idaho Code, to pay debt ser-
 41    vice on the bonds when due, in addition to reasonable  costs  associated  with
 42    the  collection  of  the  special  assessment payments. The special assessment
 43    shall be made by resolution entered upon the minutes of  the  district  board,
 44    and it shall be the duty of the clerk of the district, immediately after entry
 45    of  the  resolution in the minutes, to transmit to the board of county commis-
 46    sioners in each county in which the district  is  located,  the  certification
 47    required under section 50-3114, Idaho Code. Such special assessment shall then
 48    be collected and accounted for at the time and in the form and manner as prop-
 49    erty  taxes  are  collected  and  accounted  for under the laws of this state.
 50    Moneys derived from the imposition of the special assessment to pay  the  debt
 51    service  on  the  bonds shall be kept separately from other moneys of the dis-
 52    trict.
 53        (7)  Special assessments  against  privately  owned  residential  property
 54    shall be subject to the following provisions:
 55        (a)  The  maximum  amount  of  any  special assessment that may be imposed

                                       13

  1        shall not be increased over time  by  any  amount  exceeding  two  percent
  2        (2%)  per year, up to a maximum of ten percent (10%);
  3        (b)  The  special assessment shall be imposed for a specified time period,
  4        after which no further special assessment shall be imposed and  collected;
  5        and
  6        (c)  Subject to the applicable laws of this state, nothing in this subsec-
  7        tion  shall preclude the establishment of different categories of residen-
  8        tial property or changing the amount of  the  special  assessment  imposed
  9        upon  a  parcel whose size or use is changed.  A change in the amount of a
 10        special assessment imposed upon a parcel due to a change in  its  size  or
 11        use  shall  not require notice and hearing, if the method for changing the
 12        amount of special assessment was approved at  the  hearing  approving  the
 13        special  assessment  and  was described in sufficient detail to enable the
 14        owner of the affected parcel to determine how the change in size or use of
 15        the parcel would affect the amount of the special assessment.
 16        (8)  A district's imposition of a special assessment  shall  constitute  a
 17    lien  on  the  real property within the assessment area subject to the special
 18    assessment, including real property acquired by the  state  or  its  political
 19    subdivisions  after  the  imposition of the special assessment, which shall be
 20    effective during the period in which the special  assessment  is  imposed  and
 21    shall  have  a  priority coequal to the lien of real property taxes. A special
 22    assessment shall be subject to foreclosure by the district in the same  manner
 23    as  real property tax liens under the laws of this state, provided that a spe-
 24    cial assessment shall be subject to foreclosure at any time after thirty  (30)
 25    days following written notice of delinquency to the owner of the real property
 26    to  which the delinquency applies.  The portion of proceeds of any foreclosure
 27    sale necessary to discharge the lien  for  the  special  assessment  shall  be
 28    deposited  in  the  special  bond  fund for payment of any obligations secured
 29    thereby.
 30        (9)  No holder of special assessment bonds issued pursuant to this chapter
 31    may compel any exercise of the taxing power of the district, county or city to
 32    pay the bonds or the interest on the bonds.  Special assessment  bonds  issued
 33    pursuant to this chapter are not a debt of the state of Idaho or any political
 34    subdivision thereof including the district, county or city, nor is the payment
 35    of special assessment bonds enforceable out of any moneys other than the reve-
 36    nue pledged to the payment of the bonds.
 37        (10) Subject  to the provisions of this section, a district may issue spe-
 38    cial assessment bonds at such times and in such amounts as the district  deems
 39    appropriate  to  carry out a project or projects in phases, and payment may be
 40    made pursuant to a draw schedule.
 41        (11) The district may issue and sell refunding bonds to refund any special
 42    assessment bonds of the district authorized in  this  chapter.  The  principal
 43    amount of the refunding bonds may be more or less than the principal amount of
 44    the  bonds  being  refunded,  provided the proceeds of the refunding bonds are
 45    used only for refunding purposes and payment of the  costs  thereof,  and  the
 46    total  obligation  of the district is not increased, that is, if the amount of
 47    the refunding bonds is more than the  principal  amount  of  the  bonds  being
 48    refunded,  issuance  of the refunding bonds will result in a net present value
 49    savings to the district.  No election shall be required in connection with the
 50    issuance and sale of such refunding bonds.  Refunding bonds issued pursuant to
 51    this section shall have a final maturity date no later than the final maturity
 52    date of the bonds being refunded.

 53        50-3110.  REVENUE BONDS -- ELECTION. (1) Subject  to  section  3,  article
 54    VIII,  of  the  constitution  of the state of Idaho, after district formation,

                                       14

  1    whenever the district board shall deem it advisable to issue revenue bonds  of
  2    the  district,  the district board shall provide therefor by resolution, which
  3    resolution shall specify and set forth the community infrastructure consistent
  4    with the general plan to be financed with such bonds.
  5        (2)  The resolution shall also provide for holding an  election,  held  in
  6    compliance  with section 50-3112, Idaho Code, to submit to the qualified elec-
  7    tors of the district the question of authorizing the district to issue revenue
  8    bonds of the district to provide moneys for such community infrastructure con-
  9    sistent with the general plan.
 10        (3)  Except as otherwise specifically set forth in this section, the  pro-
 11    visions  of  the water and sewer district revenue bond act codified in chapter
 12    41, title 42, Idaho Code, shall apply with respect to the issuance of  revenue
 13    bonds  and refunding bonds under this section in substantially the same manner
 14    as if the district were a water and/or sewer district issuing  bonds  pursuant
 15    to the water and sewer district revenue bond act, and the district board shall
 16    conduct itself in the issuance of revenue bonds in substantially the same man-
 17    ner as the commissioners of a district under the water and sewer district rev-
 18    enue bond act.
 19        (4)  If the revenue bonds are approved at the election, the district board
 20    shall  thereupon  be  authorized  to issue and create such indebtedness in the
 21    manner and for the purposes specified in said resolution, and such bonds shall
 22    be issued and sold in the manner provided by the laws of the state of Idaho.
 23        (5)  After the bonds are issued, the district board  shall  enter  in  its
 24    minutes a record of the bonds sold and their numbers and dates and shall peri-
 25    odically  collect  the  pledged  revenues to pay the debt service on the bonds
 26    when due.
 27        (6)  Money derived from the collection of revenues pledged to pay the debt
 28    service on the bonds shall be kept separately from other moneys  of  the  dis-
 29    trict.
 30        (7)  No holder of revenue bonds issued pursuant to this chapter may compel
 31    any  exercise  of  the taxing power of the district, county or city to pay the
 32    bonds or the interest on the bonds. Revenue  bonds  issued  pursuant  to  this
 33    chapter  are  not  a  debt  of the state or any political subdivision thereof,
 34    including any county or city in which the district is located,  nor  are  they
 35    the  debt  of  the district, other than with respect to the revenue pledged to
 36    the payment of the bonds. The payment of revenue bonds is not enforceable  out
 37    of any money other than the revenue pledged to the payment of the bonds.
 38        (8)  Subject to the provisions of this section, a district may issue reve-
 39    nue  bonds at such times and in such amounts as the district deems appropriate
 40    to carry out a project in phases.
 41        (9)  The district may issue and sell refunding  bonds  to  refund  revenue
 42    bonds  of the district authorized by this section. The principal amount of the
 43    refunding bonds may be more or less than the principal  amount  of  the  bonds
 44    being refunded, provided the proceeds of the refunding bonds are used only for
 45    refunding  purposes and payment of the costs thereof, and the total obligation
 46    of the district is not increased, that is, if  the  amount  of  the  refunding
 47    bonds  is more than the principal amount of the bonds being refunded, issuance
 48    of the refunding bonds will result in a net present value savings to the  dis-
 49    trict.  No election shall be required in connection with the issuance and sale
 50    of  such  refunding  bonds.   Refunding  bonds issued pursuant to this section
 51    shall have a final maturity date no later than the final maturity date of  the
 52    bonds being refunded.

 53        50-3111.  TERMS  OF  BONDS.  For  any bonds issued under this chapter, the
 54    district board shall prescribe the denominations of the bonds,  the  principal

                                       15

  1    amount of each issue and the form of the bonds and shall establish the maturi-
  2    ties,  which  shall  not  exceed thirty (30) years, interest payment dates and
  3    interest rates, whether fixed or variable,  not  exceeding  the  maximum  rate
  4    stated in the notice of the election or the resolution of the district board.
  5    The  bonds,  up  to  the aggregate authorized principal amount thereof, may be
  6    issued in whole or  divided  into  series,  and  by  supplementary  resolution
  7    adopted  from  time  to time by the district board, the district may issue any
  8    remaining principal amount of the bonds in one (1) or  more  subsequent  divi-
  9    sions.   No  election shall be required in connection with the issuance of any
 10    remaining principal amount of the bonds in a subsequent division.   The  bonds
 11    may be sold by competitive bid or negotiated sale for public or private offer-
 12    ing at, below or above par.  The proceeds of the bonds shall be deposited with
 13    the treasurer, or with a trustee or agent designated by the district board, to
 14    the  credit  of the district to be withdrawn for the purposes provided by this
 15    chapter.  Pending that use, the proceeds may be invested as determined by  the
 16    district  board.   The  bonds  shall  be made payable as to both principal and
 17    interest solely from revenues of the district, and shall specify the  revenues
 18    pledged  for  such  purposes,  and shall contain such other terms, conditions,
 19    covenants and agreements as the district board deems proper.  The bonds may be
 20    payable from any combination of taxes or revenues of the  types  described  in
 21    sections 50-3108, 50-3109 and 50-3110, Idaho Code.

 22        50-3112.  NOTICE  AND  CONDUCT  OF  ELECTION. (1) Any election pursuant to
 23    this chapter shall be a nonpartisan election, and in regard to election dates,
 24    shall be held in compliance  with  section  34-106,  Idaho  Code,  or  section
 25    50-429,  Idaho  Code.  Except as otherwise specifically set forth in this sec-
 26    tion, the district board shall cause the election to be held and conducted  in
 27    the same manner prescribed by law for the holding of general elections in this
 28    state, including chapter 14, title 34, Idaho Code, and shall call the election
 29    by  posting  notices  in  three (3) public places within the boundaries of the
 30    district not less than thirty (30) days before the election. Notice shall also
 31    be published twice, the first time not less than twelve (12) days prior to the
 32    election and the second time not less than five (5) days prior  to  the  elec-
 33    tion,  in  a  newspaper of general circulation in each county or city in which
 34    the proposed district is located. A copy of such notice shall also  be  mailed
 35    to  each  district resident and each owner of real property in the district if
 36    known or such owner's agent if known, addressed to such person at his  or  her
 37    post office address if known or, if unknown, to a post office in the county or
 38    city  where  the  district  is  located.   Ownership of real property shall be
 39    determined as of the date of the adoption of the resolution ordering the hear-
 40    ing. The notice shall state:
 41        (a)  The place of holding the election;
 42        (b)  Subject to section 34-1409, Idaho Code, the hours during the  day  in
 43        which the polls will be open;
 44        (c)  If  the  election  is  a bond election, whether the bonds are general
 45        obligation bonds or revenue bonds, the total principal amount of bonds  to
 46        be  authorized,  whether  the  bonds will be issued in series, the maximum
 47        rate of interest to be paid on the bonds  and  the  maximum  term  of  the
 48        bonds, not exceeding thirty (30) years;
 49        (d)  If  the  election  is  an election to change or eliminate an existing
 50        tax, the maximum tax amount to be imposed as a result  of  the  change  or
 51        elimination;
 52        (e)  The purposes for which property taxes levied and revenues raised will
 53        be  used,  including  a  description of the community infrastructure to be
 54        financed with tax revenues, district revenues or bond proceeds;

                                       16

  1        (f)  That the imposition of property taxes will result in a lien  for  the
  2        payment thereof on real property within the district; and
  3        (g)  That  a  general plan is on file with the county clerk of each county
  4        in which the district is located.
  5        (2)  The district board shall determine the date of the election  and  the
  6    polling  place  or places for the election.  The district board may establish,
  7    change, and consolidate election precincts within the district,  as  it  deems
  8    necessary and appropriate, and shall define precinct boundaries.
  9        (3)  Subject to sections 50-3102(10) and 50-3102(13), Idaho Code, the cur-
 10    rent  property rolls for the district and current voter lists in effect at the
 11    time that the election has begun shall be  used  to  determine  the  qualified
 12    electors.  If the district includes land lying partly in and partly out of any
 13    precinct,  the  voter  lists may contain the names of all electors in the pre-
 14    cinct, and the precinct boards at those precincts shall require  that  a  pro-
 15    spective elector execute an affidavit stating that the elector is also a qual-
 16    ified elector.
 17        (4)  If  the  district  is  to  be located within two (2) or more counties
 18    and/or cities, the election shall be held on the same day  in  each  jurisdic-
 19    tion.
 20        (5)  The ballot material provided to each voter shall include:
 21        (a)  For  an  election  concerning  the  issuance  of  bonds, an impartial
 22        description of the bonds to be issued and an impartial description of  the
 23        property  taxes to be imposed; the method of apportionment, collection and
 24        enforcement and other details sufficient to enable each qualified  elector
 25        to  reasonably  estimate  the amount of tax he or she will be obligated to
 26        pay; and a statement that the issuance of the bonds and the imposition  of
 27        property  taxes  is for the provision of certain, but not necessarily all,
 28        community infrastructure that may be needed or desirable within  the  dis-
 29        trict,  and that other taxes or assessments by other governmental entities
 30        may be presented for approval by qualified electors; and
 31        (b)  For an election to change an existing maximum  tax  or  eliminate  an
 32        existing tax, an impartial description of the change or elimination.
 33        (6)  Within ten (10) days after an election, the district board shall meet
 34    and  canvass  the  returns,  and declare the results thereof.  At least a two-
 35    thirds (2/3) majority of the votes cast at the election shall be required  for
 36    issuing bonds or changing an existing tax. The canvass may be continued for an
 37    additional  period  not to exceed thirty (30) days at the election of the dis-
 38    trict board for the purpose of completing the canvass.  Failure of a  required
 39    majority to vote in favor of the matter submitted shall not prejudice the sub-
 40    mission of the same or similar matters at a later election. The canvass of any
 41    general obligation bond election shall be filed and recorded in each county in
 42    which the district is located.
 43        (7)  In  any  election held pursuant to this chapter, every voter may vote
 44    at any election held pursuant to this chapter, but shall be entitled  to  cast
 45    votes,  as  follows:  (i) each resident qualified elector shall be entitled to
 46    one (1) vote; and (ii) each owner qualified elector shall be entitled  to  one
 47    (1)  vote.  An  owner qualified elector shall not be entitled to an additional
 48    vote as a result of also being a resident of the district. When  record  title
 49    is held in more than one (1) name, the owners shall file with the clerk of the
 50    district at or prior to the election a designation in writing, of which one of
 51    the owners shall be deemed the owner for purposes of voting.
 52        (8)  In  conducting an election, the polling official may require evidence
 53    of ownership of property and designation of the power to exercise the vote  of
 54    any  owner  consistent  with  the  provisions  of  this  section  and  section
 55    50-3102(10), Idaho Code.

                                       17

  1        50-3113.  COST  OF  ADMINISTRATION.  Each  year, prior to the time for the
  2    certification required under section 50-3114, Idaho Code, the  district  board
  3    may  levy  a  tax  upon all taxable real property within the district of up to
  4    one-hundredth of one percent (.01%) of the market value  for  assessment  pur-
  5    poses  on  all  taxable  real property within the district, to be used only to
  6    reimburse or defray the administrative expenses of the district pursuant to  a
  7    district  development agreement. No election shall be required. The levy shall
  8    be made by resolution entered upon the minutes of the district board,  and  it
  9    shall be the duty of the clerk of the district, immediately after entry of the
 10    resolution in the minutes, to transmit to the board of county commissioners in
 11    each county in which the district is located, the certification required under
 12    section  50-3114,  Idaho  Code. Such tax shall then be collected and accounted
 13    for at the time and in the form and manner as other taxes  are  collected  and
 14    accounted for under the laws of this state.

 15        50-3114.  ANNUAL  FINANCIAL  STATEMENTS  AND ESTIMATES -- ANNUAL BUDGET --
 16    CERTIFICATION. (1) When levying property taxes  or  imposing  special  assess-
 17    ments,  and  prior  to  certification of same to the county commissioners, the
 18    district board shall make annual statements and estimates of  the  administra-
 19    tive  expenses  of  the  district, the costs of community infrastructure to be
 20    financed by property taxes and special assessments and the amount of all other
 21    expenditures for community infrastructure proposed to be  paid  from  property
 22    taxes  and  special  assessments and of the amount to be raised to pay general
 23    obligation bonds and special assessment bonds of the district,  all  of  which
 24    shall be provided for by the levy, imposition and collection of property taxes
 25    and  special  assessments. The annual estimates prepared by the district board
 26    shall include an amount determined by the district board, in consultation with
 27    the county tax collector, to defray the costs  imposed  upon  the  county  tax
 28    collector's  office  for  any  additional administrative services that will be
 29    required in the collection of and accounting for such district property  taxes
 30    and special assessments. Such additional costs shall be for those services not
 31    otherwise  included  in  the  general  tax  collection and accounting services
 32    already provided by the county tax collector's office and otherwise  paid  for
 33    by  property  tax  revenues, and shall be reasonably related to, but shall not
 34    exceed, the actual cost of the additional  administrative  services  provided.
 35    The  district  board  shall  file the annual statements and estimates with the
 36    district clerk and, not later than the time required by section 63-802A, Idaho
 37    Code, shall set and notify the county clerk of the date and location  set  for
 38    the annual budget hearing of the district.  The district board shall publish a
 39    notice  of the filing of the estimate, shall hold a public hearing on the por-
 40    tion of the estimate not relating to debt service on general obligation  bonds
 41    and  special  assessment  bonds and shall adopt a budget. Notice of the budget
 42    hearing shall be posted at least ten (10) days prior to the date of said meet-
 43    ing in at least one (1) conspicuous place within the district to be determined
 44    by the district board; a copy of the notice shall also be published in a news-
 45    paper of general circulation in the county or city in which the proposed  dis-
 46    trict  is  located, in one (1) issue thereof, during such ten (10) day period.
 47    The place, hour and day of the hearing shall be specified in said  notice,  as
 48    well  as  the  place where the budget may be examined prior to the hearing.  A
 49    full and complete copy of the proposed budget shall be published with and as a
 50    part of the publication of the notice of hearing.  The budget shall be  avail-
 51    able  for  public inspection from and after the date of the posting of notices
 52    of hearing as in this section provided, at such place and during such business
 53    hours as the district board may direct.  A quorum of the district board  shall
 54    attend the hearing and explain the proposed budget and hear any and all objec-

                                       18

  1    tions to the proposed budget. The district board at the time of the certifica-
  2    tion  required  under subsection (2) of this section shall file with the board
  3    of county commissioners in each county in which the district is located a cer-
  4    tified copy of the annual budget as previously prepared, approved and adopted.
  5        (2)  The district board, having determined the total amount required  from
  6    property  taxes  and special assessments to raise the amount of money fixed by
  7    the annual budget, including the amount of money needed to satisfy annual bond
  8    payments, shall cause the amount of money so determined  to  be  certified  in
  9    dollars  to the board of county commissioners in each county in which the dis-
 10    trict is located not later than the time required for certification under sec-
 11    tion 63-803, Idaho Code. Said certification shall  list  separately  each  tax
 12    levy  and  special  assessment  if  more than one (1), and the purpose of each
 13    thereof, and shall otherwise comply with the requirements of  section  63-803,
 14    Idaho Code.
 15        (3)  Following  such  certification  to the county commissioners, district
 16    property taxes and special assessments shall then be collected  and  accounted
 17    for  at  the  time and in the form and manner as other taxes are collected and
 18    accounted for under the laws of this state.  Except as  specifically  provided
 19    otherwise  in  this  chapter, all statutes of this state relating to the levy,
 20    imposition, collection, settlement and payment of  property  taxes,  including
 21    the  collection  of  delinquent  taxes  and sale of property for nonpayment of
 22    taxes and special assessments, apply to district property  taxes  and  special
 23    assessments.

 24        50-3115.  DISCLOSURE.  (1) The district board shall record with the county
 25    clerk in each county in which the district is located,  upon  the  records  of
 26    each  parcel of real property within the district that will be encumbered with
 27    any future general obligation bond or special assessment bond  repayment  lia-
 28    bility, a notice setting forth:
 29        (a)  The  current  obligation of a property owner within the district with
 30        respect to any bond repayment liability;
 31        (b)  That the obligation to retire the bonds will be the responsibility of
 32        any property owner in the district through the payment  of  real  property
 33        taxes  and  special assessments collected by the county treasurer in addi-
 34        tion to all other property tax payments;
 35        (c)  The estimated maximum tax or special assessment rate upon the  parcel
 36        for bond repayment;
 37        (d)  Whether the tax or special assessment rate is to be maintained at any
 38        level by means of any developer agreement with the district; and
 39        (e)  That  in  the  event of the failure to maintain the tax rate, the tax
 40        rate on a parcel will increase, as needed, to provide for bond repayment.
 41        (2)  Such notice may be separately recorded or included in a recorded dis-
 42    trict development agreement. The governing body, in its  resolution  approving
 43    formation  of  the  district, shall require that a form disclosure, consistent
 44    with the foregoing, be signed and acknowledged by any purchaser of land within
 45    the district prior to purchase.  The form disclosure shall  be  entitled  "CID
 46    TAX  AND SPECIAL ASSESSMENT DISCLOSURE NOTICE" and shall specifically and con-
 47    spicuously set forth "YOU ARE PURCHASING REAL PROPERTY THAT IS INCLUDED WITHIN
 48    THE BOUNDARIES OF A COMMUNITY INFRASTRUCTURE DISTRICT."  Further,  the  notice
 49    shall set forth such other notifications as determined appropriate by the dis-
 50    trict  board that shall fully and fairly disclose the property owner's general
 51    obligation bond and special assessment repayment liability with examples  pro-
 52    vided.

 53        50-3116.  DISSOLUTION  OF DISTRICT. (1) The district shall be dissolved by

                                       19

  1    the district board by a resolution of the district board upon a  determination
  2    that each of the following conditions exist:
  3        (a)  All  community infrastructure owned by the district has been, or pro-
  4        vision has been made for all  community  infrastructure  to  be  conveyed,
  5        either  to the state of Idaho or to a political subdivision thereof, which
  6        shall include a county or city in which the district is located, or  to  a
  7        public district or other authority authorized by the laws of this state to
  8        own such community infrastructure;
  9        (b)  The district has no outstanding bond obligations; and
 10        (c)  All  obligations  of the district pursuant to any contracts or agree-
 11        ments entered into by the district have been satisfied.
 12        (2)  All property within the district that is subject to the lien of  dis-
 13    trict  taxes  or  special assessments shall remain subject to the lien for the
 14    payment of general obligation bonds or special assessment bonds, as  the  case
 15    may be, notwithstanding dissolution of the district. The district shall not be
 16    dissolved  if  any  revenue bonds of the district remain outstanding unless an
 17    amount of money sufficient, together with investment income thereon,  to  make
 18    all payments due on the revenue bonds, either at maturity or prior redemption,
 19    has  been  deposited with a trustee or escrow agent and pledged to the payment
 20    and redemption of the bonds. The district may continue to operate after disso-
 21    lution only as needed to collect money and make payments  on  any  outstanding
 22    bonds.
 23        (3)  The district shall send a notice of dissolution to the governing body
 24    or  bodies,  the  county  assessor  of  each  county  in which the district is
 25    located, and the state tax commission. The district shall also record a notice
 26    of dissolution with the county clerk in each county in which the  district  is
 27    located.
 28        (4)  Subject to the foregoing provisions of this section, if upon dissolu-
 29    tion  of the district there remain any excess moneys of the district, the dis-
 30    trict board shall, by resolution, cause the  same  to  be  fairly  distributed
 31    among  the  current  taxpayers  of the district. If, as determined in the sole
 32    discretion of the district board, the amount to be distributed is de  minimis,
 33    or  the  administrative  cost  of  distribution is prohibitive, such remaining
 34    moneys shall be paid to the county treasurer of each county in which the  dis-
 35    trict  is located to be distributed among the cities and counties in which the
 36    district is located in proportion to which said cities  and  counties  receive
 37    property tax revenues generally.

 38        50-3117.  EXEMPTIONS  AND EXCLUSIONS. (1) All public utilities, as defined
 39    in section 61-129, Idaho Code, shall be exempt from taxation under this  chap-
 40    ter.
 41        (2)  No  railroad  right-of-way  may be included within a community infra-
 42    structure district without the consent of the railroad.
 43        (3)  No personal property within a community infrastructure district shall
 44    be subject to taxation under this chapter.

 45        50-3118.  LIMITATION OF LIABILITY. Neither  any  member  of  the  district
 46    board nor any person acting on behalf of the district, while acting within the
 47    scope  of his or her authority, shall be subject to any personal liability for
 48    any action taken or omitted within that scope of authority.

 49        50-3119.  APPEAL -- EXCLUSIVE REMEDY  --  CONCLUSIVENESS.  Any  person  in
 50    interest  who  feels  aggrieved by the final decision of a governing body or a
 51    district board in the formation or governing of a  district,  including,  with
 52    respect  to  any tax levy, special assessment or bond, may, within thirty (30)

                                       20

  1    days after such final decision, seek  judicial  review  by  filing  a  written
  2    notice of appeal with the clerk of the district and with the clerk of the dis-
  3    trict  court for the judicial district in which a majority of the land area of
  4    the district is located. After said thirty (30) day period  has  run,  no  one
  5    shall  have any cause or right of action to contest the legality, formality or
  6    regularity of said decision for any reason whatsoever  and,  thereafter,  said
  7    decision  shall be considered valid and uncontestable and the validity, legal-
  8    ity and regularity of any such decision shall be conclusively  presumed.  With
  9    regard  to the foregoing, if the question of validity of any bonds issued pur-
 10    suant to this chapter is not raised on appeal as aforesaid, the  authority  to
 11    issue  the bonds, the legality thereof and of the levies or assessments neces-
 12    sary to pay the same shall be conclusively presumed and no court shall  there-
 13    after have authority to inquire into such matters.

 14        50-3120.  CONSISTENCY  WITH STATE LAW. (1) A community infrastructure dis-
 15    trict shall develop community infrastructure consistent with the general  plan
 16    and  in  compliance with the requirements of chapter 13, title 50, Idaho Code,
 17    and chapter 65, title 67, Idaho Code.
 18        (2)  A community infrastructure district shall be deemed to be of the same
 19    nature and afforded the same treatment as a  local  improvement  district  for
 20    purposes of application of section 58-336, Idaho Code, relating to lands bene-
 21    fitting by such district; section 67-8209, Idaho Code, authorizing development
 22    impact  fee  credits;  and  section  67-8214, Idaho Code, providing that other
 23    powers and rights of governmental entities are not affected.

 24        50-3121.  SEVERABILITY. The provisions of this chapter are hereby declared
 25    to be severable and if any provision or the application of  the  provision  to
 26    any  person  or circumstance is declared invalid for any reason, such declara-
 27    tion shall not affect the validity of remaining portions of this chapter.

Statement of Purpose / Fiscal Impact


                         STATEMENT OF PURPOSE

                              RS 18135C2
          
     Idaho continues to experience rapid growth.  As a result, new highways,
roads, bridges, sewer, water, fire, and police stations must be constructed. 
Often, existing public facilities must be improved to provide for the increased
demands.  Idaho citizens are asking for ways to ensure that "growth pays for
growth."
     This legislation creates a financial tool to allow new growth to more
expediently pay for itself through the creation of Community Infrastructure
Districts (CIDs).  A CID allows the formation of a taxing district comprised by
the boundaries of a new development.  Taxes and assessments applied only to lands
within the new development will secure bonds.  Those bonds can be utilized to
fund and construct regional community infrastructure, inside and outside the
district.  Only infrastructure that is impact fee-eligible, such as highways,
roads, bridges, sewer, and water treatment facilities, and police, fire, and
other public safety facilities may be funded with bond proceeds generated by a
CID.
     The legislation also creates a mechanism for the prepayment of development
impact fees.  Impact fees are typically collected at the time of building permit
issuance.  Those are generally paid in arrears or collected after the need for
funding and infrastructure improvement has occurred.  The prefunding of
developmental impact fees will allow for the construction of adequate public
facilities prior to developmental growth, and in advance of the need for
increased facility capacities.
     A CID can only be formed within the boundaries of a city or within the
boundaries of a city's comprehensive planning zone and with the city's consent. 
Only infrastructure that is publicly-owned by the state, county, or city and only
impact fee-eligible projects may be constructed with the proceeds of a CID.


                             FISCAL IMPACT

     This legislation will have no impact on the general fund.





Contact:
Rep. Dennis Lake              Sen. Brent Hill
Rep. Ken Roberts              Sen. Brad Little
Rep. Jim Clark                Sen. John McGee
Rep. Leon Smith               Sen. Stan Bastain
Rep. Gary Collins             Sen. Leland Heinrich
Rep. Dell Raybould            Sen. Tim Corder
Rep. James Ruchti             Sen. Mike Jorgensen
                              Sen. David Langhorst



STATEMENT OF PURPOSE/FISCAL NOTE                                           H 680