2021 AIC Legislative Update AIC Contact Information

3100 S. Vista Ave. Suite 201 Boise, ID 83705 Ph: (800) 344-8594 or (208) 344-8594 Fax: (208) 344-8677 www.idahocities.org FIRST OFF…

THANK YOU! We couldn’t have been successful in our legislative efforts without you. Finding Legislative Resources on AIC Website www.idahocities.org Major Last Minute Policy Issues to Resolve Property Taxes Update SB 1108 was defeated narrowly in the Senate. There continues to be a desire for the Legislature to do something. The legislative Property Tax Working Group will be back this summer to continue looking at the issue. The House is expected to introduce an omnibus property tax bill that may include an increase in the Homeowner’s Exemption, additional Circuit Breaker relief, and some form of a property tax cap. It’s not clear whether this proposal will get enough traction to advance. AIC continues to work hard to advance the message that property tax caps are flawed public policy. Transportation Funding

House Bill 362 Sponsor: Rep. , R-Meridian & Sen. , R-Meridian. Increases the distribution of state sales tax revenue for transportation bonding from 1% to 4.5% of revenue, taken out after revenue sharing so it does not impact the revenue sharing distribution. A minimum of $80 million annually is dedicated to ITD for major state highway projects. Local highway jurisdictions—cities, counties and highway districts—would receive revenue over the $80 million dedicated to ITD, which would amount to $4 million in bonding authority the first year and would grow in future years, and locals can pool these funds for projects.

House Passed 59-11-0; Awaiting Floor Vote in Senate AIC Supports Election Bills: HB 319 & SB 1111 as Amended

One of the more controversial issues this session involved moving city candidate and other elections to November in even numbered years.

House Bill 319 was introduced with the goal of changing city elections to even numbered years and then the House realized the bill was likely dead on arrival in the Senate, so the House amended Senate Bill 1111 to incorporate the provisions of HB 319.

SB 1111 was a negotiated nearly consensus bill that would have fixed and clarified provisions of law for the bill passed last session that requires cities over 100,000 population to elect their city councilors by district.

AIC has weighed in against SB 1111 as amended and we hope that the Senate defeats the bill.

SB 1111 as amended passed the House 53-16-1. HB 363 Smoking & Tobacco Retailers, Local Regulations HB 363 Sponsor: Idaho Retailers Association Would prohibit a local government from adopting or enforcing requirements for the regulation, marketing or sale of tobacco products or electronic smoking devices that are more restrictive than Idaho Code Title 39, Chapter 57 or in addition to that chapter. No local government may impose a tax or fee on tobacco products or electronic smoking devices. Local governments retain the power to regulate use of tobacco products or electronic smoking devices in public places or in public outdoor areas. House Passed 61-7-2; Awaiting Hearing in Senate State Affairs Committee AIC Supports Idaho Building Codes - Adoption Over 80% of Idaho cities have adopted building codes. The high rate of adoption reflects cities’ understanding that safely constructed buildings are essential for public health and safety. In 2018, legislation was passed that prevents amendments to the energy conservation code. Statute requirements for local government adoption of building codes were otherwise retained. It is time to update your city’s building code ordinance. Idaho Building Codes – Legislative Update 2021 Legislation Session Update & Looking Ahead to 2022: AIC successfully opposed a proposal that sought to restrict local governments' amendments to the electrical and plumbing code. Idaho stakeholders engaged with the construction and development industries to continue to support uniform minimum codes within Idaho. Resources: See the AIC 2020 Idaho Building Code Adoption Toolkit. Contact Johanna Bell, [email protected] to be added to the Idaho Building Code listserv for training and advocacy announcements. Bills AIC Supported that Passed into Law HB 74 City Quarantines Restricted to City Limits House Bill 74 Sponsor: Rep. Brandon Mitchell, R-Moscow & Sen. , R- Meridian Restricts city quarantine power to within city limits, removing language currently in Idaho Code 50-304 and 50-606 that references enforcement of quarantines for up to 5 miles outside of city limits, as well as eliminate language authorizing the mayor to enforce city laws up to one mile outside city limits. LAW. Effective 3/12/2021 HB 99 Pollutant Trading House Bill 99 Sponsor: Rep. , R-Nampa & Idaho Water Users Association Establishes a new code section (I.C. § 39-3640) to authorize voluntary water quality trading programs in Idaho. Voluntary water quality trades between municipal, industrial, and agricultural operations provide an additional means to achieve water quality goals, where pollutant reductions may be obtained from other sources to assist in permit or license pollutant limit compliance. LAW. Effective 7/1/2021 HB 149 COVID Liability Protection Extended House Bill 149 Sponsor: Rep. , R-Blackfoot The bill extends the COVID-19 liability immunity provisions of Idaho Code Chapter 34, Title 6 to July 1, 2022. LAW. Effective 7/1/2021 with 7/1/2022 Sunset Clause HB 156 Impact Fees, Fire Apparatus House Bill 156 Sponsor: Rep. , R-Middleton. Clarifies that fire stations and apparatus are public safety facilities that can be paid for with development impact fee revenue. LAW. Effective 7/1/2021 HB 160 Heavy Trucks, Local Procedure House Bill 160 Sponsor: Amalgamated Sugar Co. Removes the sunset clause on the 2019 trucking legislation (House Bill 168), and provides that applicants seeking designated routes no longer have to pay the $5,000 fee to local authorities for technical analysis and also increases the dollar amount for grants to local authorities for route technical analysis from $5,000 to $10,000. LAW. Effective 4/15/2021 SB 1042 QBS, Misc. Amendments

Senate Bill 1042 Sponsor: Sen. Jim Woodward, R-Sagle. Makes clarifications and updates to Idaho’s Qualifications Based Selection (QBS) process, covering procurement of professional engineering, construction management, architecture, landscape architecture and land surveying services. The bill would make $50,000 the minimum dollar threshold for using the QBS process outlined in Idaho Code 67-2320, require that the list of ranked respondents and measurable scoring criteria be made available to the public, and provide that the list of pre-approved persons or firms must include at least two for consideration and is valid for up to five years. LAW. Effective 7/1/2021 SB 1044 Urban Renewal, Use of Eminent Domain Senate Bill 1044 Sponsor: Sen. , R-Coeur d’Alene. Restricts use of eminent domain by urban renewal agencies to those that have fully elected boards governing the agency, and in the case the agency has an unelected board, then the city council must make the final decision on using eminent domain. LAW. Effective 7/1/2021 SB 1096 PERSI Disability Benefit for Public Safety Senate Bill 1096 Sponsor: Sen. , R-Nampa & Rep. , R- Meridian. Provides a PERSI catastrophic disability benefit for police officers and firefighters who are seriously injured in the line of duty. The cost of the benefit is borne entirely by the employee. LAW. Effective 7/1/2021 Bills AIC Supported that Did Not Advance or Were Killed HJR 003 Warrantless Misdemeanor Arrests Const. Amendment House Joint Resolution 3 Sponsor: Rep. Greg Chaney, R-Caldwell. Proposes an amendment to the Idaho Constitution allowing law enforcement officers to make warrantless misdemeanor arrests when the officer did not observe the crime for specific offenses authorized by the Legislature and only where probable cause evinces an ongoing threat to public health and safety. In State v. Clarke in 2019, the Idaho Supreme Court ruled that warrantless misdemeanor arrests are unconstitutional unless the alleged crime is witnessed by a law enforcement officer. Died in House State Affairs Committee without a hearing HB 53 Legal Notices, Optional Online Publication House Bill 53 Sponsor: Rep. Jon Weber, R-Rexburg. Would have provided the option for government entities to post legal notices on the entity’s website or send by mail in lieu of publishing in the newspaper. House Failed 32-38-0 SB 1149 Broadband Enabling Legislation Senate Bill 1149 Sponsor: Sen. , R-Rexburg & Rep. John Vander Woude, R-Nampa. The bill provides express authority for cities, counties and port districts to build and maintain broadband communications infrastructure. The bill prohibits using eminent domain to acquire the facilities or other property of any private communications service provider. Died in Senate State Affairs Committee without a hearing BUT, significant investments in broadband are being made at the federal level and $$$ will be coming to Idaho. Bills AIC Opposed that were Killed (We Think) HB 30 POST Funding, Diversion from Liquor Fund House Bill 30 Sponsor: Idaho Peace Officers Standards & Training (POST). Would have diverted $800,000 from the State Liquor Account for funding POST, splitting the amount equally between the state and local governments. Died in House Judiciary, Rules & Administration Committee HB 45 Rental Fees & Deposit Ordinances, Preemption House Bill 45 Sponsor: Rep. Greg Ferch, R-Boise. Would have added fees and deposits to current language in Idaho Code 55-307 prohibiting local governments from regulating rent charged for leasing private residential property. Died in House Judiciary, Rules & Administration Committee HB 90 Removal of Historical Monuments, Renaming of Streets or Facilities, State Approval House Bill 90 Sponsor: Rep. , R-Hayden. The bill replaces House Bill 65 and would require legislative approval by concurrent resolution anytime that a historical monument or memorial in place prior to July 1, 2021 located on public property owned by the state or local government may be relocated or altered. Also requires legislative approval prior to renaming of any structure, facility or street named for a historic figure or event in place prior to July 1, 2021. The bill provides exceptions for work necessary to repair, maintain or improve such a monument or memorial.

House Passed 51-19-0; Died in Senate State Affairs Committee HB 164 ATVs / UTVs Local Road Designation, Preemption House Bill 164 Sponsor: Rep. Terry Gestrin, R-Donnelly. Would eliminate a current provision of Idaho Code 49-426 allowing local governments to designate certain roads or portions of roads as being prohibited for use by ATVs, UTVs and motorbikes. Died in House Transportation & Defense Committee HB 197 City Ordinances Restricted to Infraction Penalties House Bill 197 Sponsor: Rep. , R-Idaho Falls. Would prohibit cities and counties from imposing misdemeanor penalties by ordinance and restrict ordinance penalty provisions to infractions punishable by a fine of up to $25 for a first offense, up to $50 for a second offense within a year, and up to $75 for a third or subsequent violation. Died in House Judiciary, Rules & Administration Committee HB 311 Public Art Over $25K Funded with Property Taxes, Election Required House Bill 311 Sponsor: Rep. Aaron von Ehlinger, R-Lewiston & Sen. Regina Bayer, R-Meridian. Would require any taxing district to have a public hearing and an election prior to designing, constructing, installing or purchasing public art costing $25,000 or more using property tax revenues, with 60% voter approval required. If the art costs less than $25,000, then the governing board may approve the expenditure by a two-thirds majority vote (if comprised of elected officials). The bill provides an exception for public art that has been purchased prior to July 1, 2021. Died in House Revenue & Taxation Committee SB 1106 Highway District Projects, Exempt from Local Land Use Policies Senate Bill 1106 Sponsor: Ada County Highway District. Would exempt highway district essential facilities and local transportation systems from local land use plans and ordinances. Died in Senate Local Government & Taxation Committee SB 1120 Law Enforcement Collective Bargaining Senate Bill 1120 Sponsor: Sen. , R-Twin Falls. Would provide collective bargaining for city and county law enforcement officers concerning wages, rates of pay, working conditions and all other terms and conditions of employment. Died in Senate Commerce & Human Resources Committee Bills AIC is Neutral on that Have Passed into Law HB 73 Local Govt. Financial Uniformity & Transparency House Bill 73 Sponsor: Rep. , R-Coeur d’Alene. Establishes new law on local government accounting, budgeting and financial uniformity and transparency. The State Controller will create and maintain a uniform accounting manual for local governments, that must be used for accounting, financial reporting and budgeting. LAW. Sections 1 – 4 & 7 – 21 Effective 7/1/2021; Sections 5 & 6 Effective 1/1/2022 HB 73, continued

State Controller will provide a public website to make local government accounting, budgeting and financial information available to the public and policy makers and implementation may be staggered by phases, but the website must be fully functional by January 1, 2025. Transitions the existing financial and other reporting requirements for the portal currently operated by the Legislative Audits Division to the State Controller by January 1, 2022. Failure to submit required information by the deadlines results in a late fee of up to $500 per day, the entity is prohibited from increasing its property tax budget in the next year and the entity’s sales tax revenue sharing funds may be withheld. Urban renewal agencies would also be required to comply with the new law. The State Controller will become the official repository of state and local government audit reports. HB 73 Implementation: What You Need to Know AIC has been in communication with the Controller’s Office and they want cities to know that they plan to approach this process collaboratively and cooperatively. General session at AIC Annual Conference in June will feature comments by Controller’s Office and provide opportunity for city officials to ask questions. Cities that want to be part of the pilot program to get the uniform chart of accounts and accounting manual off the ground should get in touch with Chief Deputy Controller Joshua Whitworth at [email protected] If you have questions that you would like answers from the Controller’s Office at the Annual Conference session, please email those to Justin Ruen at [email protected] SB 1058 City Library Boards, City Elected & Appointed Officials Prohibited Senate Bill 1058 Sponsor: Sen. , R-Hammett. Prohibits the mayor or a city appointed officer (e.g. city clerk, city treasurer, city attorney, or others designated by local policy) from being appointed to serve as a trustee on a library board (the bill leaves in place the current requirement for a city councilor to serve as a nonvoting library liaison). The bill also provides that the library director will hire or oversee the hiring of all library employees based on the policies, procedures and job descriptions of the city. LAW. Effective 7/1/2021 Bills that were Amended Favorably that AIC Supports HB 66 Bond & Levy Disclosure

House Bill 66 Sponsor: Rep. Ron Nate, R-Rexburg & Sen. Doug Ricks, R-Rexburg. Clarifies provisions of law on bond and levy disclosure requirements and provides that in the event a local government fails to abide by those requirements a person can sue to have the bond or levy overturned and the local government is responsible for paying court costs in the event the challenge is successful. The original version of the bill had very punitive provisions requiring local governments to pay the costs of the election which were removed from the bill entirely. We appreciate the bill’s sponsors working with stakeholders to craft legislation that is workable from the local government perspective. Awaiting Floor Consideration in House & Governor’s Signature/Would Take Effect 7/1/2021 Bills AIC Opposed that will Pass into Law HB 124 Impact Fee Advisory Committee Membership House Bill 124 Sponsor: Rep. Bruce Skaug, R-Nampa & Rep. , R-Twin Falls. Requires all members of a city development impact fee advisory committee to live within city limits, and adds a provision requiring at least two members of the committee who are not part of the development community, in addition to the minimum of two members currently required to represent the development community. City elected officials and staff would be prohibited from serving on the committee. The bill would apply prospectively to appointments and reappointments on and after July 1, 2021. LAW. Effective 7/1/2021 QUESTIONS?