SB572,,112023 SENATE BILL 572
October 23, 2023 - Introduced by Senators Cabral-Guevara, Ballweg, L. Johnson and Taylor, cosponsored by Representatives Donovan, Drake, C. Anderson, Considine, Goyke, Joers, Ohnstad and Steffen. Referred to Committee on Government Operations.
SB572,,22An Act to renumber and amend 66.1110 (4) (c); to amend 66.1109 (2) (c), 66.1109 (2m) (c), 66.1109 (4m) (c), 66.1110 (3) (c), 66.1110 (3) (e), 66.1110 (4m) (c), 66.1110 (5) and 66.1110 (6) (b) 3.; and to create 66.1109 (1) (ce), 66.1109 (3) (e), 66.1109 (6), 66.1110 (4) (c) 1., 66.1110 (4) (c) 2., 66.1110 (4) (cg), 66.1110 (4) (cr) and 66.1110 (4) (e) of the statutes; relating to: multijurisdictional business improvement districts, annual reports for neighborhood improvement districts, and certain notifications for neighborhood improvement districts and business improvement districts.
SB572,,33Analysis by the Legislative Reference Bureau
This bill authorizes two or more municipalities to create a single multijurisdictional business improvement district and makes several other changes to the statutes governing business improvement districts (BIDs) and neighborhood improvement districts (NIDs).
Under current law, upon the receipt of a petition from certain business owners in a designated area of a municipality, a municipality may create a BID. A BID is governed by a board, whose members are appointed by the creating municipality’s chief executive officer. The board must adopt an initial operating plan for the BID, and may make changes to the operating plan each year, subject to the approval of the municipality’s governing body.
Under current law, upon being petitioned to do so by an owner of real property that is located in the proposed NID, a municipality may create an NID. In general, an NID is an area within a municipality consisting of parcels that are near to one another, but not necessarily contiguous, at least some of which are used for residential purposes and subject to general real estate taxes, and may include property that is acquired and owned by the NID board. An NID is governed by a board, whose members are elected. A municipality may adopt an initial operating plan for the NID, and the board may annually make changes to the operating plan, subject to the approval of the municipality’s governing body.
The creating municipality may impose special assessments on the property in a BID or an NID, and may appropriate other money to the BID or NID. These funds must be placed in a segregated account and must be spent on implementing the BID’s or NID’s operating plan and paying for certain required audits. Generally, the boards determine how funds are spent. The creating municipality may also terminate a BID or an NID by following certain procedures that are specified in the statutes.
Under current law, the state, regional planning commissions, federally recognized Indian tribes and bands, and local units of government, including municipalities, counties, school districts, and other special purpose districts, may enter into intergovernmental cooperation agreements for services or joint exercise of powers. As part of an intergovernmental cooperation agreement, these units of government may create a commission to perform the service or exercise the joint power.
Subject to a number of conditions, this bill authorizes two or more municipalities to create a single multijurisdictional BID. The conditions include a requirement that the BID’s borders contain contiguous territory in all of the municipalities that are party to the agreement creating the multijurisdictional BID. A multijurisdictional BID is governed by a single board whose members are appointed by the chief executive officers of each of the municipalities that are part of the multijurisdictional BID and confirmed by the relevant local legislative bodies. Actions taken by the board that require local legislative body approval, however, must be approved by the relevant local legislative bodies.
Under the bill, each municipality that is a part of the multijurisdictional BID must impose, collect, and deposit into its own municipal treasury all special assessments or other funds that relate to properties that are located within its own jurisdiction. Also under the bill, each municipality that is a part of the multijurisdictional BID must provide any required notices to all property owners whose property is located within its own jurisdiction.
With regard to a BID, current law requires a board that had a cash balance of less than $300,000 at all times during the prior fiscal year to include a reviewed financial statement in its public annual report. If the cash balance equals or exceeds $300,000 at any time during the prior fiscal year, the BID must include an independent certified audit in its annual report. The reviewed financial statement must be prepared in accordance with generally accepted accounting principles and include a review of the financial statement by an independent certified public accountant.
Current law requires an NID’s board to include an independent certified audit in its mandatory public annual report describing the current status of the NID, irrespective of the cash balance in the NID’s segregated account. Under this bill, the financial statement and audit requirements that currently apply to a BID apply in the same way to an NID.
Finally, for BIDs and NIDs, the bill changes the requirement that certain notices be sent by certified mail to a requirement that they must be sent by first class mail. In addition, if a person to whom a notice must be sent owns multiple properties in the BID or NID, the municipality may fulfill its notice requirements by sending only one notice to the person. The notice must list all the affected properties or parcels owned by the person.