LEGISLATURE OF THE STATE OF IDAHO Sixty-seventh Legislature Second Regular Session - 2024 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 521 BY REVENUE AND TAXATION COMMITTEE AN ACT 1 RELATING TO TAXATION; PROVIDING LEGISLATIVE FINDINGS AND INTENT; AMENDING 2 SECTION 63-3024, IDAHO CODE, TO REVISE PROVISIONS REGARDING THE INCOME 3 TAX RATE ON INDIVIDUALS, ESTATES, AND TRUSTS; AMENDING SECTION 63-3025, 4 IDAHO CODE, TO REVISE PROVISIONS REGARDING THE CORPORATE INCOME TAX 5 RATE; AMENDING SECTION 33-911, IDAHO CODE, TO REVISE PROVISIONS RE- 6 GARDING THE SCHOOL DISTRICT FACILITIES FUND; AMENDING SECTION 33-102A, 7 IDAHO CODE, TO REVISE PROVISIONS REGARDING THE APPOINTMENT OF AN EX- 8 ECUTIVE OFFICER OF THE STATE BOARD OF EDUCATION AND TO PROVIDE FOR A 9 CERTAIN REPORT; AMENDING SECTION 33-104, IDAHO CODE, TO REVISE PROVI- 10 SIONS REGARDING THE CONDUCT OF MEETINGS OF THE STATE BOARD OF EDUCATION; 11 AMENDING SECTION 34-106, IDAHO CODE, TO REMOVE A PROVISION REGARDING 12 SCHOOL DISTRICT BOND AND PROPERTY TAX LEVY ELECTIONS; AMENDING SECTION 13 33-802A, IDAHO CODE, TO REVISE PROVISIONS REGARDING THE COMPUTATION OF 14 SCHOOL BOND AND INTEREST LEVIES; REPEALING SECTION 33-905, IDAHO CODE, 15 RELATING TO THE SCHOOL DISTRICT BUILDING ACCOUNT; REPEALING SECTION 16 33-906, IDAHO CODE, RELATING TO THE BOND LEVY EQUALIZATION SUPPORT PRO- 17 GRAM; REPEALING SECTION 33-906A, IDAHO CODE, RELATING TO THE BOND LEVY 18 EQUALIZATION FUND; REPEALING SECTION 33-906B, IDAHO CODE, RELATING TO A 19 VALUE INDEX CALCULATION; AMENDING SECTION 33-907, IDAHO CODE, TO REVISE 20 PROVISIONS REGARDING THE PUBLIC EDUCATION STABILIZATION FUND; AMENDING 21 CHAPTER 9, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-912, 22 IDAHO CODE, TO ESTABLISH PROVISIONS REGARDING THE SCHOOL MODERNIZATION 23 FACILITIES FUND; AMENDING CHAPTER 9, TITLE 33, IDAHO CODE, BY THE ADDI- 24 TION OF A NEW SECTION 33-913, IDAHO CODE, TO PROVIDE FOR THE ISSUANCE OF 25 BONDS FROM THE SCHOOL MODERNIZATION FACILITIES FUND; AMENDING CHAPTER 26 9, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-914, IDAHO 27 CODE, TO PROVIDE FOR THE ELECTION OF AN ANNUALIZED OR LUMP SUM DISTRI- 28 BUTION FROM THE SCHOOL MODERNIZATION FACILITIES FUND; AMENDING CHAPTER 29 9, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-915, IDAHO 30 CODE, TO PROVIDE FOR A FIXED DISTRIBUTION FROM THE SCHOOL MODERNIZATION 31 FACILITIES FUND; AMENDING CHAPTER 9, TITLE 33, IDAHO CODE, BY THE ADDI- 32 TION OF A NEW SECTION 33-916, IDAHO CODE, TO PROVIDE FOR THE ELIGIBILITY 33 OF SCHOOL DISTRICTS FOR SCHOOL MODERNIZATION FACILITIES FUND DISTRI- 34 BUTIONS; AMENDING CHAPTER 9, TITLE 33, IDAHO CODE, BY THE ADDITION OF 35 A NEW SECTION 33-917, IDAHO CODE, TO PROVIDE FOR A SCHOOL DISTRICT'S 36 USE OF FUNDS FROM THE SCHOOL MODERNIZATION FACILITIES FUND; AMENDING 37 CHAPTER 9, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-918, 38 IDAHO CODE, TO PROVIDE FOR A BEST PRACTICES PLAN FOR SCHOOL FACILITIES; 39 REPEALING SECTION 33-1018B, IDAHO CODE, RELATING TO SCHOOL BUILDING 40 MAINTENANCE MATCHING FUNDS; REPEALING SECTION 33-1019, IDAHO CODE, 41 RELATING TO A REQUIRED ALLOCATION FOR SCHOOL BUILDING MAINTENANCE; 42 REPEALING SECTION 39-8006A, IDAHO CODE, RELATING TO A BEST PRACTICES 43 MAINTENANCE PLAN FOR SCHOOL BUILDINGS; AMENDING SECTION 57-810, IDAHO 44 CODE, TO REVISE PROVISIONS REGARDING DISTRIBUTION OF CERTAIN EXCESS 45

2 FUNDS FOR PROPERTY TAX RELIEF; AMENDING SECTION 57-811, IDAHO CODE, 1 TO REVISE PROVISIONS REGARDING THE TAX RELIEF FUND; AMENDING SECTION 2 63-724, IDAHO CODE, TO REVISE PROVISIONS REGARDING HOMEOWNER PROPERTY 3 TAX RELIEF; AMENDING SECTION 63-2520, IDAHO CODE, TO REMOVE A PROVISION 4 REGARDING A CERTAIN DISTRIBUTION TO THE GENERAL FUND; AMENDING SECTION 5 63-3638, IDAHO CODE, TO PROVIDE FOR CERTAIN SALES TAX DISTRIBUTIONS; 6 AMENDING SECTION 67-5771A, IDAHO CODE, TO REVISE PROVISIONS REGARD- 7 ING THE DISTRIBUTION OF UNEXPENDED FUNDS; AMENDING SECTION 67-6409, 8 IDAHO CODE, TO PROVIDE THAT THE STATE BUILDING AUTHORITY MAY ISSUE 9 BONDS RELATED TO THE SCHOOL MODERNIZATION FACILITIES FUND AND TO MAKE 10 TECHNICAL CORRECTIONS; AMENDING SECTION 67-7434, IDAHO CODE, TO REVISE 11 PROVISIONS REGARDING THE DISTRIBUTION OF LOTTERY INCOME; AMENDING SEC- 12 TION 33-356, IDAHO CODE, TO REMOVE CODE REFERENCES; AMENDING SECTION 13 33-1018C, IDAHO CODE, TO PROVIDE A CORRECT CODE REFERENCE; AMENDING 14 SECTION 33-1102, IDAHO CODE, TO REMOVE A PROVISION REGARDING CERTAIN 15 BONDS; AMENDING SECTION 40-718, IDAHO CODE, TO PROVIDE A CORRECT CODE 16 REFERENCE; AND DECLARING AN EMERGENCY, PROVIDING RETROACTIVE APPLICA- 17 TION, AND PROVIDING EFFECTIVE DATES. 18 Be It Enacted by the Legislature of the State of Idaho: 19 SECTION 1. LEGISLATIVE FINDINGS AND INTENT. (1) The Legislature finds 20 that the burden of taxation on the people of Idaho is too great. 21 (2) The Legislature further finds that the primary drivers of this bur- 22 den are the need for school districts to resort to property taxes to pay for 23 the construction and repair of school facilities and an income tax rate that 24 is in the second highest quintile among states. 25 (3) Therefore, it is the intent of the Legislature to amend state law to 26 provide income tax relief and reduce the need for and likelihood of school 27 districts resorting to property taxes to meet their school facility needs, 28 including by restricting opportunities to increase school property taxes 29 and directing additional state tax revenues to school facilities, while 30 ensuring accountability for the same. 31 SECTION 2. That Section 63-3024, Idaho Code, be, and the same is hereby 32 amended to read as follows: 33 63-3024. INDIVIDUALS' TAX AND TAX ON ESTATES AND TRUSTS. (1) For each 34 taxable year, a tax measured by Idaho taxable income as defined in this chap- 35 ter is hereby imposed upon every individual, trust, or estate required by 36 this chapter to file a return. 37 (2)(a) The tax imposed upon individuals, trusts, and estates shall be 38 computed at the rate of five and eight-tenths percent (5.8%) five and 39 six hundred ninety-five thousandths percent (5.695%) of taxable income 40 over two thousand five hundred dollars ($2,500). 41 (b) For taxpayers filing a joint return pursuant to the provisions 42 of section 63-3031, Idaho Code, the tax imposed shall be computed at 43 the rate of five and eight-tenths percent (5.8%) five and six hundred 44 ninety-five thousandths percent (5.695%) of taxable income over five 45 thousand dollars ($5,000). For the purposes of this section, a return 46 of a surviving spouse, as defined in section 2(a) of the Internal Rev- 47

3 enue Code, and a head of household, as defined in section 2(b) of the 1 Internal Revenue Code, shall be treated as a joint return. 2 (3) For taxable year 2000 and each year thereafter, the state tax com- 3 mission shall prescribe a factor that shall be used to compute the Idaho in- 4 come tax thresholds provided in subsection (2) of this section. The factor 5 shall provide an adjustment to the Idaho tax thresholds so that inflation 6 will not result in a tax increase. The Idaho tax thresholds shall be adjusted 7 as follows: multiply the last threshold amount by the percentage (the con- 8 sumer price index for the calendar year immediately preceding the calendar 9 year to which the adjusted threshold amount will apply divided by the con- 10 sumer price index for calendar year 1998). For the purpose of this computa- 11 tion, the consumer price index for any calendar year is the average of the 12 consumer price index as of the close of the twelve (12) month period for the 13 immediately preceding calendar year, without regard to any subsequent ad- 14 justments, as adopted by the state tax commission. This adoption shall be 15 exempt from the provisions of chapter 52, title 67, Idaho Code. The consumer 16 price index shall mean the consumer price index for all U.S. urban consumers 17 published by the United States department of labor. The state tax commission 18 shall annually include the factor as provided in this subsection to multiply 19 against Idaho taxable income using the thresholds in this section to arrive 20 at that year's Idaho taxable income for tax threshold purposes. 21 (4) In the case of a trust that is an electing small business trust as 22 defined in section 1361 of the Internal Revenue Code, the special rules for 23 taxation of such trusts contained in section 641 of the Internal Revenue Code 24 shall apply, except that the individual rate provided in subsection (2)(a) 25 of this section shall apply in computing tax due under this chapter. 26 (5) The state tax commission may promulgate rules defining the condi- 27 tions upon which such returns shall be filed. 28 SECTION 3. That Section 63-3025, Idaho Code, be, and the same is hereby 29 amended to read as follows: 30 63-3025. TAX ON CORPORATE INCOME. (1) For each taxable year, a tax is 31 hereby imposed on the Idaho taxable income of a corporation, other than an 32 S corporation, that transacts or is authorized to transact business in this 33 state or has income attributable to this state. The tax shall be equal to 34 five and eight-tenths percent (5.8%) five and six hundred ninety-five thou- 35 sandths percent (5.695%) of Idaho taxable income. 36 (2) In the case of an S corporation that is required to file a return un- 37 der section 63-3030, Idaho Code, a tax is hereby imposed at the rate provided 38 in subsection (1) of this section upon both: 39 (a) Net recognized built-in gain attributable to this state. The 40 amount of net recognized built-in gain attributable to this state shall 41 be computed in accordance with section 1374 of the Internal Revenue 42 Code subject to the apportionment and allocation provisions of section 43 63-3027, Idaho Code; and 44 (b) Excess net passive income attributable to this state. The amount of 45 excess net passive income attributable to this state shall be computed 46 in accordance with section 1375 of the Internal Revenue Code subject to 47 the apportionment and allocation provisions of section 63-3027, Idaho 48 Code. 49

4 (3) The tax imposed by subsection (1) or (2) of this section shall not be 1 less than twenty dollars ($20.00); provided that the twenty-dollar ($20.00) 2 minimum payment shall not be collected from nonproductive mining corpora- 3 tions. 4 (4) The tax imposed by this section shall not apply to corporations 5 taxed pursuant to the provisions of section 63-3025A, Idaho Code. 6 SECTION 4. That Section 33-911, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 33-911. SCHOOL DISTRICT FACILITIES FUND. (1) There is hereby created 9 in the state treasury the school district facilities fund. The fund shall 10 consist of moneys provided pursuant to sections 57-811, and 63-3638, and 11 67-7434, Idaho Code, and any other legislative transfers or appropriations. 12 Interest earned from the investment of moneys in the fund shall be returned 13 to the fund. 14 (2) The moneys in the fund shall be distributed by the state controller 15 to the state department of education by August 1 each year for the purpose 16 of construction or renovation of school facilities. The moneys shall be 17 distributed by the state department of education to each school district, 18 as defined in section 33-1001(21), Idaho Code, on a per-pupil basis, first 19 as provided in subsection (7) of this section and then on a per-pupil ba- 20 sis using the average daily attendance calculation provided in section 21 33-1003A, Idaho Code, except that a student attending less than half-time 22 through a virtual learning program shall not be counted toward that school 23 district's average daily attendance calculation for each student in kinder- 24 garten through grade 12 at physical facilities that are part of and on school 25 grounds of the school district in which the student is enrolled with verifi- 26 cation, as needed, by the office of the state board of education. Upon formal 27 approval by the state board of education, a school district may receive an 28 exemption to the physical facility requirement pursuant to this subsec- 29 tion if the student would have attended a physical facility in the school 30 district if not for a stated emergency. The state department of education 31 shall transfer the moneys by no later than August 31 each year to each school 32 district. Such moneys shall be used in place of property tax levy moneys and 33 shall be expended by a school district for one (1) or more of the purposes set 34 forth in paragraphs (a) through (d) of this subsection. Moneys in the fund 35 must be used by a school district in the following order of priority: 36 (a) Payment of existing school bonds authorized pursuant to chapter 11, 37 title 33, Idaho Code; 38 (b) Payment of supplemental school levies authorized pursuant to sec- 39 tion 33-802, Idaho Code, excluding indefinite term supplemental levies 40 described in section 33-802(5), Idaho Code; 41 (c) Saved in a reserve account by the school district for future school 42 facility construction or renovation needs Payment of school plant fa- 43 cility levies authorized pursuant to sections 33-804 and 33-804A, Idaho 44 Code; and 45 (d) For use in securing and making payments on a new school facilities 46 bond Any moneys that remain following the payments provided in para- 47 graphs (a) through (c) of this subsection may be: used for construction 48 of a new school facility, renovation, or maintenance needs; used to 49

5 secure and make payments on a new school facilities bond; or saved in 1 a reserve account by the school district for future school facility 2 needs. Uses of funds shall include regular and routine facilities 3 maintenance, including preventive maintenance, building repairs, and 4 building security, and periodic major facilities projects that involve 5 planning, design, construction, renovation, retrofitting, and replac- 6 ing of buildings and building systems, components, and features, as 7 well as site acquisition, site improvements, and new construction. 8 (3) The amount of moneys received by a school district pursuant to this 9 section must be deducted from a school levy that would otherwise have been 10 paid by property taxpayers. Such moneys may not be duplicated by the collec- 11 tion of property tax, and no property taxes may be collected in order to make 12 extra payments on expenses described in subsection (2) of this section in ex- 13 cess of required amounts. 14 (4) Each school district shall identify the amount received in the cur- 15 rent year pursuant to this section in the certification of its budget in ac- 16 cordance with section 63-803, Idaho Code. Said amount must be subtracted 17 from the amount to be levied. The amount of moneys thereby saved from being 18 collected by a property tax levy shall be reported on each property tax no- 19 tice pursuant to section 63-902, Idaho Code. 20 (5) Each school district shall report annually to the state department 21 of education, in a manner prescribed by it, on the expenditure of moneys it 22 has received pursuant to this section. The state department of education 23 shall present the reports to the legislature each January. 24 (6) For the purposes of this section, the Idaho school for the deaf and 25 the blind shall be considered a school district and shall receive a distribu- 26 tion based on the average daily attendance of the school. 27 (7) For state fiscal years 2025 and 2026 only, any school district that 28 would have received support from the bond levy equalization support program 29 for a qualified bond passed prior to January 1, 2024, and for which property 30 taxes were levied in property tax year 2024 pursuant to the amount intended 31 by the bond shall receive a distribution of funds from the distribution pro- 32 vided under subsection (2) of this section of at least as much as would have 33 been provided through bond levy equalization support on July 1, 2024. The 34 state department of education may adjust distributions for remaining dis- 35 tricts proportionally as necessary pursuant to this paragraph. On and af- 36 ter July 1, 2024, school districts may use funds provided in this section and 37 section 33-913, Idaho Code, to offset the bond levy equalization support. 38 SECTION 5. That Section 33-102A, Idaho Code, be, and the same is hereby 39 amended to read as follows: 40 33-102A. OFFICE OF THE STATE BOARD -- EXECUTIVE OFFICER -- APPOINTMENT 41 -- COMPENSATION -- DUTIES AND POWERS. (1) There is hereby created as an ex- 42 ecutive agency of the state board of education the office of the state board 43 of education. The state board of education governor is hereby authorized to 44 appoint an executive officer of the state board who shall serve at the plea- 45 sure of the state board governor and shall receive such salary as fixed by the 46 state board governor. The executive secretary may be appointed as the execu- 47 tive officer. 48

6 (2) The executive officer shall, under the direction of the state 1 board, have such duties and powers as prescribed by the said board of regents 2 and the state board of education, not otherwise assigned by law. 3 (3) The executive officer shall, together with the president of the 4 state board of education, submit an annual report to the legislature no later 5 than January 15 of each year, detailing the uses and impact of the school 6 modernization facilities fund. 7 SECTION 6. That Section 33-104, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 33-104. MEETINGS OF THE BOARD -- HONORARIUM -- EXPENSES -- ORGANIZA- 10 TION. (1) The state board shall hold no less than four (4) regular meetings 11 annually at such time and place as may be directed by the board. Special 12 meetings may be called by the president at any time and place designated in 13 such call. 14 (2) Each member shall be compensated as provided by section 59-509(h), 15 Idaho Code. 16 (3) The president of the board shall be selected by the governor. 17 (4) At its first meeting after the first day of April, in each year, the 18 state board shall organize and shall elect from its membership a president, a 19 vice president and a secretary. the president shall select a vice president 20 and secretary. 21 SECTION 7. That Section 34-106, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 34-106. LIMITATION UPON ELECTIONS. On and after January 1, 2011, 24 notwithstanding any other provisions of the law to the contrary, there shall 25 be no more than two (2) elections conducted in any county in any calendar 26 year, except as provided in this section or section 34-220, Idaho Code, and 27 except that elections to fill vacancies in the United States house of repre- 28 sentatives shall be held as provided in the governor's proclamation. 29 (1) The dates on which elections may be conducted are: 30 (a) The third Tuesday in May of each year; and 31 (b) The Tuesday following the first Monday in November of each year. 32 (c) In addition to the elections specified in paragraphs (a) and (b) of 33 this subsection and subsection (7) of this section, an emergency elec- 34 tion may be called upon motion of the governing board of a political sub- 35 division. An emergency exists when there is a great public calamity, 36 such as an extraordinary fire, flood, storm, epidemic, or other disas- 37 ter, or when it is necessary to do emergency work to prepare for national 38 or local defense or to safeguard life, health or property. 39 (2) Candidates for office elected in May shall take office on the date 40 specified in the certificate of election but not more than sixty (60) days 41 following the election. 42 (3) Candidates for office elected in November shall take office as pro- 43 vided in the constitution or on January 1 next succeeding the November elec- 44 tion. 45 (4) The governing board of each political subdivision subject to the 46 provisions of this section that, prior to January 1, 2011, conducted an elec- 47

7 tion for members of that governing board on a date other than a date permit- 1 ted in subsection (1) of this section shall establish as the election date 2 for that political subdivision the date authorized in subsection (1) of this 3 section that falls nearest the date on which elections were previously con- 4 ducted, unless another date is established by law. 5 (5) The secretary of state is authorized to provide such assistance as 6 necessary and to prescribe any needed rules or interpretations for the con- 7 duct of election authorized under the provisions of this section. 8 (6) Water districts governed by chapter 6, title 42, Idaho Code, are ex- 9 empt from the provisions of this section. 10 (7) Community colleges governed by chapter 21, title 33, Idaho Code, 11 and school districts are subject to the limitations specified in subsection 12 (1) of this section, except that school districts may also hold an election 13 on the last Tuesday in August of each year on bonded indebtedness and prop- 14 erty tax levy questions. 15 (8) A city initiative or referendum election shall be held on the Tues- 16 day following the first Monday in November of odd-numbered years. A county 17 initiative or referendum election or a bond, levy and any other ballot ques- 18 tion elections conducted by any political subdivision shall be held on the 19 nearest date authorized in subsection (1) of this section that falls more 20 than sixty (60) days after the clerk of the political subdivision orders that 21 such election shall be held in May or November of even-numbered years or more 22 than fifty (50) days after the order for all other elections, unless other- 23 wise provided by law. Ballot language for any question to be placed on the 24 ballot shall be submitted to the county clerk at least sixty (60) days before 25 an election held in May or November of even-numbered years and at least fifty 26 (50) days before all other elections. 27 (9) Recall elections may be held on any of the three (3) dates autho- 28 rized in subsections (1) and (7) of this section that fall more than forty- 29 five (45) days after the clerk of the political subdivision orders that such 30 election shall be held. 31 (10) Irrigation districts governed by title 43, Idaho Code, are subject 32 to the limitations specified in subsection (1) of this section, except that 33 irrigation districts may also hold an election on the first Tuesday in Febru- 34 ary of each year and on the first Tuesday in August of each year on questions 35 required to be voted upon by title 43, Idaho Code. 36 SECTION 8. That Section 33-802A, Idaho Code, be, and the same is hereby 37 amended to read as follows: 38 33-802A. COMPUTATION OF BOND AND BOND INTEREST LEVIES. When the board 39 of trustees of any school district determines and makes a levy allowed by 40 section 33-802, Idaho Code, and incorporates such levy as a part of the 41 school district's budget to service all maturing bond and bond interest 42 payments for the ensuing fiscal property tax year, it shall take into consid- 43 eration any state bond levy equalization funds provided pursuant to section 44 33-906, Idaho Code, and any balances remaining or that may remain in its 45 bond interest and redemption fund after meeting its bond and bond interest 46 obligations for its current fiscal property tax year. The levy so made for 47 the ensuing fiscal property tax year shall be an amount which, together with 48 any state bond levy equalization funds provided pursuant to section 33-906, 49

8 Idaho Code, and the balance in its bond interest and redemption fund remain- 1 ing after meeting its current fiscal property tax year bond and bond interest 2 obligations, shall satisfy all maturing bond and bond interest payments 3 for at least the ensuing twelve (12) months, and not to exceed the ensuing 4 twenty-one (21) months counted from July 1 of the current calendar year month 5 property tax year, but shall not exceed one hundred twenty percent (120%) 6 of the amount required for the payments for the ensuing twelve (12) month 7 property tax year. 8 SECTION 9. That Section 33-905, Idaho Code, be, and the same is hereby 9 repealed. 10 SECTION 10. That Section 33-906, Idaho Code, be, and the same is hereby 11 repealed. 12 SECTION 11. That Section 33-906A, Idaho Code, be, and the same is hereby 13 repealed. 14 SECTION 12. That Section 33-906B, Idaho Code, be, and the same is hereby 15 repealed. 16 SECTION 13. That Section 33-907, Idaho Code, be, and the same is hereby 17 amended to read as follows: 18 33-907. PUBLIC EDUCATION STABILIZATION FUND. (1) There is hereby cre- 19 ated in the state treasury a fund to be known as the public education sta- 20 bilization fund, which shall function as a fund detail of the public school 21 income fund. The fund shall consist of moneys transferred to the fund ac- 22 cording to the provisions of sections 33-905, 33-1018 and 33-1018C, Idaho 23 Code, and any other moneys made available through legislative transfers or 24 appropriations. Moneys in the fund are hereby continuously appropriated for 25 the purposes stated in sections 33-1018 and 33-1018B, Idaho Code, and shall 26 only be expended for the purposes stated in sections 33-1018, and 33-1018A 27 and 33-1018B, Idaho Code. Any accumulated balances in the fund that are in 28 excess of eight and one-third percent (8.334%) fifteen percent (15%) of the 29 current fiscal year's total appropriation of state funds for public school 30 support shall be transferred to the bond levy equalization school district 31 facilities fund. Interest earned from the investment of moneys in the fund 32 shall be retained in the fund. 33 (2) For the period July 1, 2021, through June 30, 2023, no moneys from 34 the public education stabilization fund shall be withdrawn for any purpose, 35 including those in sections 33-1018, 33-1018A, and 33-1018B, Idaho Code, and 36 any other law or rule to the contrary, for encumbered obligations and un- 37 encumbered expenditures associated with state funds appropriated for fis- 38 cal year 2022. The state department of education shall prorate any negative 39 variance pursuant to section 33-1018, Idaho Code, by a formula prescribed by 40 the state department of education. 41 SECTION 14. That Chapter 9, Title 33, Idaho Code, be, and the same is 42 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 43 ignated as Section 33-912, Idaho Code, and to read as follows: 44

9 33-912. SCHOOL MODERNIZATION FACILITIES FUND. (1) There is hereby 1 created in the state treasury the school modernization facilities fund. The 2 fund shall consist of moneys provided pursuant to section 63-3638(19), Idaho 3 Code. 4 (2) Moneys in the fund are hereby continuously appropriated solely for 5 the purpose of making annualized distributions to school districts electing 6 to receive distributions and for paying the principal, interest, and other 7 amounts required for education bonds issued by the Idaho state building au- 8 thority for the state department of education in accordance with the provi- 9 sions of this chapter. 10 (3) Moneys in the fund shall be paid by the state department of edu- 11 cation to districts electing annual distributions and to the Idaho state 12 building authority as required for annual debt service and other expenses 13 relating to the bonds issued pursuant to section 33-913, Idaho Code. 14 (4) The state treasurer shall invest the idle moneys of the school mod- 15 ernization facilities fund, and the interest earned on such investment shall 16 be retained by the school modernization facilities fund. 17 SECTION 15. That Chapter 9, Title 33, Idaho Code, be, and the same is 18 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 19 ignated as Section 33-913, Idaho Code, and to read as follows: 20 33-913. ISSUANCE OF BONDS -- SCHOOL MODERNIZATION FACILITIES 21 FUND. (1) The Idaho state building authority is hereby authorized to issue 22 bonds from time to time as needed for the state department of education, 23 secured by unobligated moneys in the school modernization facilities fund 24 established in section 33-912, Idaho Code, for the purpose of providing 25 funds to the state department of education for distribution to eligible 26 school districts as provided in this section. 27 (2) Bonds shall be issued with maturities of no more than ten (10) years 28 from the date of issuance. 29 (3)(a) The annual debt service and related expenses of the Idaho state 30 building authority for bonds issued under this section may not exceed 31 the amount available from continuing appropriations of the school mod- 32 ernization facilities fund minus the annualized distributions elected 33 by school districts. 34 (b) In times of economic recession in which sales tax receipts fall be- 35 low prior year levels, the legislature may consider temporarily ceasing 36 annualized distributions for those districts electing such annualized 37 distributions. In the case of school districts that elect a lump sum, 38 annual debt service and related expenses of such bonds may be covered 39 during the economic recession by withholding other payments that would 40 be made available to the district in response to the economic recession, 41 such as distributions of rainy day funds or federal recovery funds. 42 SECTION 16. That Chapter 9, Title 33, Idaho Code, be, and the same is 43 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 44 ignated as Section 33-914, Idaho Code, and to read as follows: 45 33-914. ANNUALIZED OR LUMP SUM DISTRIBUTION -- SCHOOL MODERNIZATION 46 FACILITIES FUND. (1) School districts may elect to receive their distribu- 47

10 tion as a lump sum from the net proceeds of the bonds paid to the state de- 1 partment of education. School districts may alternatively request to re- 2 ceive their distribution in annualized amounts, which shall be subject to 3 the order of priority specified for the school district facilities fund es- 4 tablished in section 33-911, Idaho Code. The state department of education 5 shall establish a process for school districts to elect a lump sum or an- 6 nualized distribution or a combination thereof in alignment with the dates 7 specified in section 33-911, Idaho Code. Annualized distributions shall be 8 distributed to school districts no later than August 31 each year, to those 9 school districts electing such distributions prior to that date. 10 (2) If a school district elects not to receive either an annualized dis- 11 tribution or a lump sum amount or fails to make a selection by July 1, 2025, 12 the amount the school district would have received shall be transferred to 13 the school district facilities fund created in section 33-911, Idaho Code, 14 for distribution to all schools according to the provisions of section 15 33-911, Idaho Code. 16 SECTION 17. That Chapter 9, Title 33, Idaho Code, be, and the same is 17 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 18 ignated as Section 33-915, Idaho Code, and to read as follows: 19 33-915. FIXED DISTRIBUTION -- SCHOOL MODERNIZATION FACILITIES 20 FUND. (1) The state department of education shall establish a fixed distri- 21 bution of funds to be made available for voluntary election to each school 22 district subject to the conditions in this section. 23 (a) The distribution shall be calculated in state fiscal year 2025 for 24 each school district, as defined in section 33-1001(21), Idaho Code, 25 that is in operation as of July 1, 2024. 26 (b) The distribution shall be calculated by multiplying the following 27 two (2) factors, both of which shall be based on the most recent data 28 available in the state fiscal year coinciding with the distribution 29 calculation: 30 (i) Calculate the per-pupil amount, using the average daily at- 31 tendance calculation provided in section 33-1003A, Idaho Code, 32 for each student in kindergarten through grade 12 at physical 33 facilities that are part of and on school grounds of the school 34 district in which the student is enrolled with verification, as 35 needed, by the office of the state board of education. Upon formal 36 approval by the state board of education, a school district may re- 37 ceive an exemption to the physical facility requirement pursuant 38 to this subsection if the student would have attended a physical 39 facility in the school district if not for a stated emergency; and 40 (ii) Calculate, together with the Idaho state building authority, 41 the total amount that a bond issuance would generate, based on the 42 amount established in section 63-3638(19), Idaho Code. 43 (c) In no case shall the amount awarded to any school district be less 44 than twenty-five thousand dollars ($25,000) over the ten (10) year pe- 45 riod. 46 (d) In no case shall the amount awarded to any school district with an 47 active charter district maintenance and operation levy pursuant to sec- 48 tion 33-802(6), Idaho Code, or a charter district supplemental mainte- 49

11 nance and operation levy pursuant to section 33-802(4), Idaho Code, ex- 1 ceed forty million dollars ($40,000,000) over the ten (10) year period. 2 Excess funds shall be distributed proportionately according to the 3 factors established in paragraph (b) of this subsection to remaining 4 school districts that received initial allocations below forty million 5 dollars ($40,000,000). Any districts receiving reallocations under 6 this paragraph shall not exceed forty million dollars ($40,000,000). 7 (e) For the purposes of this section, the Idaho school for the deaf and 8 the blind shall be considered a school district and shall receive a dis- 9 tribution based on the average daily attendance of the school. 10 (2) The provisions of this section shall be null, void, and of no force 11 and effect on and after June 30, 2034. 12 SECTION 18. That Chapter 9, Title 33, Idaho Code, be, and the same is 13 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 14 ignated as Section 33-916, Idaho Code, and to read as follows: 15 33-916. ELIGIBILITY OF SCHOOL DISTRICTS FOR SCHOOL MODERNIZATION FA- 16 CILITIES FUND DISTRIBUTIONS. The state department of education shall not ap- 17 prove school district requests for annualized distributions or for distri- 18 bution from the applicable bond proceeds until the following conditions are 19 satisfied: 20 (1) The school district has submitted a ten (10) year facilities plan in 21 accordance with provisions of section 33-918, Idaho Code; 22 (2) The school district attests that if it operated on a five (5) day 23 school week during fiscal year 2024, it will not convert to a four (4) day 24 school week during the period for which the school district has elected 25 to receive funding from the school modernization facilities fund. If the 26 school district does convert from a five (5) day school week to a four (4) day 27 school week or if it operated on a four (4) day school week during fiscal year 28 2024, it must attest that it meets the minimum contract days and minimum stu- 29 dent instructional day requirements of the state board of education, which 30 requirements shall be implemented no later than August 1, 2024; and 31 (3) The school district attests compliance with the dignity and nondis- 32 crimination in public education requirements specified in section 33-138, 33 Idaho Code, and further attests that the school district does not require job 34 applicants to sign written diversity statements. 35 SECTION 19. That Chapter 9, Title 33, Idaho Code, be, and the same is 36 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 37 ignated as Section 33-917, Idaho Code, and to read as follows: 38 33-917. SCHOOL DISTRICT USE OF FUNDS -- SCHOOL MODERNIZATION FACILI- 39 TIES FUND. 40 (1)(a) Moneys distributed to a school district shall be used for school 41 facility construction, renovation, or maintenance needs or, in the case 42 of school districts electing annualized distributions, funds shall 43 be used subject to section 33-911, Idaho Code. Uses of funds shall 44 include regular and routine facilities maintenance, including preven- 45 tive maintenance, building repairs, and building security, and shall 46 also include periodic major facilities projects that involve plan- 47

12 ning, design, construction, renovation, retrofitting, and replacing 1 of buildings and building systems, components, and features, as well as 2 site acquisition, site improvements, and new construction. 3 (b) Any funds distributed by the state to school districts for facil- 4 ities must be used only for the purposes described in this subsection. 5 Any funds intended for facilities but used for another purpose shall 6 be returned to the state by the school district and deposited to the 7 state general fund. If the school district fails to return such funds, 8 an amount equivalent to the misused funds shall be deducted from the 9 state's next payment to the school district pursuant to this chapter or 10 chapter 52, title 33, Idaho Code. 11 (2) All funds shall be used for school facilities directly related to 12 the school district's core educational mission. No funds shall be used for 13 facilities with a primary athletic purpose. 14 (3) Each school district shall annually report to the state department 15 of education, in a manner prescribed by the state department of education, on 16 the planned and actual expenditure of moneys it has received pursuant to this 17 section. 18 (4) A model school facility council shall be created by July 1, 2024, 19 to research, adopt, and recommend a model school facility plan that schools 20 shall abide by when using school modernization facilities fund moneys pur- 21 suant to the plan adopted in paragraph (c) of this subsection. The council 22 shall: 23 (a) Be chaired by the executive director of the office of the state 24 board of education, with administrative support provided by the office 25 of the state board of education; 26 (b) Consist of nine (9) members, with three (3) members appointed by 27 the governor, three (3) members appointed by the speaker of the house of 28 representatives, and three (3) members appointed by the president pro 29 tempore of the senate; and 30 (c) Adopt a model school facility plan and submit it to the legislature 31 by July 1, 2026, that: 32 (i) Outlines a clear plan for school facility construction, in- 33 cluding standardization for elementary schools, middle schools, 34 and high schools; 35 (ii) Considers potential variability of school properties, ob- 36 jectives, and goals; and 37 (iii) Consults all necessary experts to develop a thorough plan 38 for school facilities to guide the use of funds from the school 39 modernization facilities fund. 40 SECTION 20. That Chapter 9, Title 33, Idaho Code, be, and the same is 41 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 42 ignated as Section 33-918, Idaho Code, and to read as follows: 43 33-918. BEST PRACTICES PLAN FOR SCHOOL FACILITIES. The state depart- 44 ment of education shall draft a best practices maintenance plan for school 45 facilities that shall be supplied to the superintendent of each school dis- 46 trict. Based on the best practices plan, each school district shall develop 47 a ten (10) year plan and submit it to the state department of education for 48 approval outlining its anticipated construction, renovation, and mainte- 49

13 nance needs. Such plan shall be submitted in advance of receiving a distri- 1 bution from the school modernization facilities fund, pursuant to the provi- 2 sions of this chapter. The plan shall outline the resources and steps neces- 3 sary for all school buildings in the school district to be in good or perfect 4 condition. The plan shall also take into consideration population trends 5 and changing preferences in the delivery of education within the school dis- 6 trict. 7 SECTION 21. That Section 33-1018B, Idaho Code, be, and the same is 8 hereby repealed. 9 SECTION 22. That Section 33-1019, Idaho Code, be, and the same is hereby 10 repealed. 11 SECTION 23. That Section 39-8006A, Idaho Code, be, and the same is 12 hereby repealed. 13 SECTION 24. That Section 57-810, Idaho Code, be, and the same is hereby 14 amended to read as follows: 15 57-810. CASH TRANSFERS FOR PROPERTY TAX RELIEF. Notwithstanding the 16 provisions of section 57-814, Idaho Code, after the close of each fiscal year 17 in 2023, 2024, and 2025, the state controller shall determine any excess cash 18 balance in the general fund. When calculating any excess cash balance, the 19 state controller shall first provide for the ending balance, as determined 20 by the legislative record, to be carried over into the next fiscal year, plus 21 an amount sufficient to cover encumbrances as approved by the division of fi- 22 nancial management and an amount sufficient to cover any reappropriation as 23 authorized by the legislature. On July 1, or as soon thereafter as is practi- 24 cable, of each such year, there is hereby appropriated one hundred fifty mil- 25 lion dollars ($150,000,000) or the balance of the general fund excess cash 26 balance, whichever is less, to be transferred as follows: 27 (1) The state controller shall transfer the first fifty million dollars 28 ($50,000,000) to the homeowner property tax relief account established pur- 29 suant to the provisions of section 63-724, Idaho Code; and 30 (2) The state tax commission shall transfer the remaining moneys to be 31 used for the purpose of property tax relief in the following manner. Fifty 32 percent (50%) of the remaining moneys shall be distributed to the school dis- 33 trict facilities fund established pursuant to section 33-911, Idaho Code, 34 and fifty percent (50%) shall be distributed to each county in the propor- 35 tion that the amount of property taxes levied for the current tax year and 36 approved pursuant to section 63-809, Idaho Code, on all taxable properties 37 in the county bears to the total amount of property taxes levied for the cur- 38 rent tax year and approved pursuant to section 63-809, Idaho Code, in all the 39 counties. This amount shall be certified to the county auditor and tax col- 40 lector by the state tax commission no later than the first Monday in Novem- 41 ber. Each county shall apply the moneys received as a credit on each prop- 42 erty owner's property tax bill in proportion to the amount of property taxes 43 on the property and shall distribute the moneys in the same manner as if they 44 were property taxes the homeowner property tax relief account established 45 pursuant to the provisions of section 63-724, Idaho Code. 46

14 SECTION 25. That Section 57-811, Idaho Code, be, and the same is hereby 1 amended to read as follows: 2 57-811. TAX RELIEF FUND. (1) There is hereby created in the state trea- 3 sury the tax relief fund to which shall be credited all moneys remitted from 4 sections 63-3620F and 63-3638, Idaho Code, from federal grants, donations, 5 or any other source. Moneys in the fund are intended to fund future tax re- 6 lief statutes enacted by the legislature and may be expended pursuant to ap- 7 propriation. All interest earned on the investment of idle moneys in the 8 fund shall be returned to the fund. 9 (2) For fiscal year 2025 and each fiscal year thereafter, twenty per- 10 cent (20%) of the moneys in the tax relief fund is continuously appropriated 11 and shall be transferred to the school district facilities fund established 12 pursuant to section 33-911, Idaho Code. 13 (3) For fiscal year 2024 2025 and each fiscal year thereafter, the state 14 controller shall transfer thirty-six million dollars ($36,000,000) thirty- 15 nine million dollars ($39,000,000) from the tax relief fund to the state pub- 16 lic defense fund established pursuant to section 57-827, Idaho Code. 17 (4) For fiscal year 2023 and each fiscal year thereafter, the state 18 controller shall transfer the remaining balance of the fund or two hundred 19 thirty-six million dollars ($236,000,000), whichever is less, from the tax 20 relief fund to the general fund. 21 SECTION 26. That Section 63-724, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 63-724. HOMEOWNER PROPERTY TAX RELIEF. (1) It is the intent of the 24 legislature to provide property tax relief on owner-occupied properties in 25 Idaho receiving the homestead property tax exemption pursuant to section 26 63-602G, Idaho Code, as of the second Monday in July each year by providing 27 state moneys as replacement funding as provided in this section. This sec- 28 tion does not apply to occupancy taxes levied pursuant to section 63-317, 29 Idaho Code. 30 (2) For the purpose of this section: 31 (a) "Eligible property taxes" means all property tax levies on homes 32 receiving the homestead property tax exemption pursuant to section 33 63-602G, Idaho Code, as of the second Monday in July each year, ex- 34 cept for bonds, school district levies, plant facility levies, and any 35 voter-approved temporary levy for a specific duration. When calculat- 36 ing the eligible property taxes for the purpose of this section, the 37 taxable value of each property shall include the value of no more than 38 one (1) acre. 39 (b) "Homeowner property tax relief homestead" means a property receiv- 40 ing the homestead property tax exemption pursuant to section 63-602G, 41 Idaho Code, as of the second Monday in July each year. 42 (3) There is hereby created in the state treasury the homeowner prop- 43 erty tax relief account. Moneys in this account shall consist of moneys 44 transferred from the general fund and are continuously appropriated for 45 homeowner property tax relief pursuant to the provisions of this section. 46 (4) The county assessor shall prepare a homeowner property tax relief 47 roll, which shall be in addition to all other property rolls. By no later 48

15 than the fourth first Monday of August September each year, the homeowner 1 property tax relief roll shall be certified by the county assessor to the 2 county auditor and to the state tax commission in the manner prescribed by 3 rules promulgated by the state tax commission. The homeowner property tax 4 relief roll shall show: 5 (a) The name of the taxpayer; 6 (b) An accurate description of the homeowner property tax relief home- 7 stead; and 8 (c) The property's current market value for assessment purposes. 9 (5)(a) The county auditor shall complete the homeowner property tax re- 10 lief roll by adding the following information: 11 (i) The current immediate prior year's eligible levy for the tax 12 code area in which the property is situated; 13 (ii) The estimated amount of eligible property taxes levied 14 calculated by applying the levy in subparagraph (i) of this para- 15 graph to the current year's market value for assessment purposes 16 on each qualifying homestead; and 17 (iii) The total estimated amount of eligible property taxes levied 18 on all properties within the county that are receiving the home- 19 stead property tax exemption as of the second Monday in July of 20 each the current year. 21 (b) By no later than the fourth second Monday of October September each 22 year, the county auditor shall certify the completed homeowner property 23 tax relief roll to the state tax commission in the manner prescribed by 24 rules promulgated by the state tax commission. 25 (6) The state tax commission shall determine the total number of home- 26 owner property tax relief homesteads to be allowed in each county, the 27 dollar amount of eligible property taxes for each homeowner property tax 28 relief homestead allowed, and the total dollar amount of eligible property 29 taxes for all homeowner property tax relief homesteads within each county 30 from the amounts certified on the homeowner property tax relief roll. The 31 state tax commission shall divide the moneys in the homeowner property tax 32 relief account as of August 1 each year by the total dollar amount of eli- 33 gible property taxes levied on all such property tax relief homesteads in 34 all counties, then multiply the result by the total amount of eligible prop- 35 erty taxes levied on such homesteads in each county. Such amounts shall be 36 summed for all eligible property tax relief homesteads in all counties to 37 determine the total amount of estimated eligible property taxes. This sum 38 shall be divided into the amount of moneys in the homeowner property tax 39 relief account as of August 1 of each year. The result shall be multiplied 40 by the total amount of estimated eligible property taxes on such homesteads 41 in each county. This amount shall be certified to the county auditor and tax 42 collector by the state tax commission no later than the first third Monday 43 in November September. By no later than December 20 of each year, the state 44 tax commission shall pay to the county tax collector of each county the first 45 half of the amount due to each county as reimbursement for homeowner property 46 tax relief as provided in this section and shall pay the second half of such 47 amount by no later than June 20 of the following year. 48 (7) The state tax commission may audit each and every property on the 49 homeowner property tax relief roll. If the state tax commission determines 50

16 that a homeowner property tax relief homestead credit is erroneous, the 1 state tax commission shall disapprove as much of the credit as necessary in 2 order to conform with statutory standards. The state tax commission shall 3 provide the homeowner written notice of the state tax commission's intent 4 to disapprove all or a portion of the credit. The homeowner shall have 5 twenty-eight (28) days to make written protest to the state tax commission 6 of the intended action. The homeowner may submit additional information and 7 may request an informal hearing with the state tax commission. If the home- 8 owner fails to make written protest within twenty-eight (28) days, the state 9 tax commission shall provide written notice of disapproval to both the home- 10 owner and the county auditor of the county in which the property is situated 11 by December 20. Any homeowner whose claim is disapproved in whole or in part 12 by the state tax commission may appeal such disapproval to the board of tax 13 appeals or to the district court of the county of residence of the taxpayer 14 within thirty (30) days. 15 (8) Each county treasurer shall apply the moneys received pursuant to 16 subsection (6) of this section to the eligible property taxes levied on the 17 properties listed on the certified homeowner property tax relief roll that 18 year. The moneys shall be designated as a line item credit against the to- 19 tal of all eligible property taxes on the property tax bill for each property 20 receiving the tax relief provided by this section. Such moneys shall be dis- 21 tributed in the same manner as property tax revenues. 22 (9) The amount of property tax relief for a homeowner's property taxes 23 shall be applied after the homestead exemption pursuant to section 63-602G, 24 Idaho Code, has been applied. The property tax relief amount cannot exceed 25 the actual amount of current eligible property taxes due on the homeowner's 26 property tax notice. No delinquent property taxes, penalties, interest, or 27 fines may be paid with moneys from this program. 28 (10) Nothing in this section shall prevent a homeowner from applying 29 for or receiving any other property tax relief provided pursuant to this 30 chapter. The property tax relief provided pursuant to this section shall be 31 credited to the homeowner's property tax bill before any other property tax 32 relief is applied, up to a maximum of the actual property taxes due on the 33 homeowner property tax relief homestead. 34 (11) Any amount of homeowner property tax relief moneys distributed by 35 the state tax commission to a county that exceeds the total amount of all el- 36 igible property taxes due from all homeowner property tax relief homesteads 37 in the county shall revert to the state general fund. The county treasurer 38 shall deposit such moneys with the state treasurer by the fourth Monday in 39 July each year for the preceding property tax year. 40 (12) Within three (3) years of payment, the state tax commission may re- 41 cover any erroneous or incorrect payment made to any homeowner receiving re- 42 lief under this section. The deficiency determination, collection, and en- 43 forcement procedures provided in chapter 30, title 63, Idaho Code, shall ap- 44 ply and be available to the state tax commission for enforcement and collec- 45 tion under this section. Wherever liens or any other proceedings are defined 46 as income tax liens or proceedings, they shall, when applied in enforcement 47 or collection under this section, be described as tax relief liens and pro- 48 ceedings. In connection with this section, a deficiency shall consist of any 49 amount erroneously paid on behalf of a homeowner under this section. 50

17 SECTION 27. That Section 63-2520, Idaho Code, be, and the same is hereby 1 amended to read as follows: 2 63-2520. DISTRIBUTION OF MONEYS COLLECTED. Revenues received from the 3 taxes imposed by this chapter, and any revenues received from licenses, per- 4 mits, penalties, interest, or deficiency additions, shall be distributed by 5 the state tax commission as follows: 6 (a) An amount of money shall be distributed to the state refund account 7 sufficient to pay current refund claims. All refunds authorized under this 8 chapter by the state tax commission shall be paid through the state refund 9 account, and those moneys are continuously appropriated. 10 (b) The balance remaining with the state treasurer after deducting the 11 amount described in subsection (a) of this section shall be distributed as 12 follows: 13 (1) Five million dollars ($5,000,000) shall be distributed to the per- 14 manent building fund created by section 57-1108, Idaho Code. 15 (2) Three hundred sixty thousand dollars ($360,000) shall be dis- 16 tributed to the central cancer registry fund and is subject to appropri- 17 ation as provided for in chapter 35, title 67, Idaho Code. 18 (3) Three hundred thousand dollars ($300,000) shall be distributed to 19 the cancer control fund created by section 57-1702, Idaho Code, and is 20 subject to appropriation as provided for in chapter 35, title 67, Idaho 21 Code. 22 (4) An amount equal to the annual general fund appropriation for 23 bond levy equalization, less the amount distributed under section 24 67-7434(1), Idaho Code, if applicable, pursuant to section 33-906, 25 Idaho Code, shall be annually distributed to the general fund. 26 (5)(4) All remaining moneys shall be distributed as follows: For fis- 27 cal years on and after July 1, 2006, all moneys shall be distributed to 28 the permanent building fund with the moneys to be used for the repair, 29 remodel and restoration of the state capitol building and state facili- 30 ties pertaining to the capitol restoration until such time as the capi- 31 tol restoration is adequately funded as certified by the director of the 32 department of administration. Thereafter, all remaining moneys shall 33 be distributed in the following priority order: 34 (i) Four million seven hundred thousand dollars ($4,700,000) to 35 be used for the purpose of paying the state match as required for 36 federal funds committed to pay the annual scheduled GARVEE debt 37 service until such time as the Idaho housing and finance associ- 38 ation certifies that any such bonds or notes are adequately paid 39 for, in accordance with chapter 62, title 67, Idaho Code; 40 (ii) Five million dollars ($5,000,000) to the secondary aquifer 41 planning, management and implementation fund as established 42 in section 42-1780, Idaho Code. Such moneys shall be used for 43 statewide aquifer stabilization; and 44 (iii) All remaining moneys following distributions pursuant to 45 subparagraphs (i) and (ii) of this paragraph shall be distributed 46 to the transportation expansion and congestion mitigation fund 47 established in section 40-720, Idaho Code. 48

18 SECTION 28. That Section 63-3638, Idaho Code, be, and the same is hereby 1 amended to read as follows: 2 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this 3 chapter, except as may otherwise be required in sections 63-3203, 63-3620F, 4 and 63-3709, Idaho Code, shall be distributed by the state tax commission as 5 follows: 6 (1) An amount of money shall be distributed to the state refund account 7 sufficient to pay current refund claims. All refunds authorized under this 8 chapter by the state tax commission shall be paid through the state refund 9 account, and those moneys are continuously appropriated. 10 (2) Five million dollars ($5,000,000) per year is continuously appro- 11 priated and shall be distributed to the permanent building fund, provided by 12 section 57-1108, Idaho Code. 13 (3) Four million eight hundred thousand dollars ($4,800,000) per year 14 is continuously appropriated and shall be distributed to the water pollution 15 control fund established by section 39-3628, Idaho Code. 16 (4) An amount equal to the sum required to be certified by the chair- 17 man of the Idaho housing and finance association to the state tax commis- 18 sion pursuant to section 67-6211, Idaho Code, in each year is continuously 19 appropriated and shall be paid to any capital reserve fund established by 20 the Idaho housing and finance association pursuant to section 67-6211, Idaho 21 Code. Such amounts, if any, as may be appropriated hereunder to the capital 22 reserve fund of the Idaho housing and finance association shall be repaid for 23 distribution under the provisions of this section, subject to the provisions 24 of section 67-6215, Idaho Code, by the Idaho housing and finance associa- 25 tion, as soon as possible, from any moneys available therefor and in excess 26 of the amounts the association determines will keep it self-supporting. 27 (5) An amount equal to the sum required by the provisions of sections 28 63-709 and 63-717, Idaho Code, after allowance for the amount appropriated 29 by section 63-718(3), Idaho Code, is continuously appropriated and shall be 30 paid as provided by sections 63-709 and 63-717, Idaho Code. 31 (6) An amount required by the provisions of chapter 53, title 33, Idaho 32 Code. 33 (7) An amount required by the provisions of chapter 87, title 67, Idaho 34 Code. 35 (8) For fiscal year 2011 and each fiscal year thereafter, four million 36 one hundred thousand dollars ($4,100,000), of which two million two hundred 37 thousand dollars ($2,200,000) shall be distributed to each of the forty-four 38 (44) counties in equal amounts and one million nine hundred thousand dol- 39 lars ($1,900,000) shall be distributed to the forty-four (44) counties in 40 the proportion that the population of the county bears to the population of 41 the state. For fiscal year 2012 and for each fiscal year thereafter, the 42 amount distributed pursuant to this subsection shall be adjusted annually 43 by the state tax commission in accordance with the consumer price index for 44 all urban consumers (CPI-U) as published by the U.S. department of labor, 45 bureau of labor statistics, but in no fiscal year shall the total amount 46 allocated for counties under this subsection be less than four million one 47 hundred thousand dollars ($4,100,000). Any increase resulting from the ad- 48 justment required in this section shall be distributed to each county in the 49

19 proportion that the population of the county bears to the population of the 1 state. Each county shall establish a special election fund to which shall 2 be deposited all revenues received from the distribution pursuant to this 3 subsection. All such revenues shall be used exclusively to defray the costs 4 associated with conducting elections as required of county clerks by the 5 provisions of section 34-1401, Idaho Code. 6 (9) One dollar ($1.00) on each application for certificate of title 7 or initial application for registration of a motor vehicle, snowmobile, 8 all-terrain vehicle or other vehicle processed by the county assessor or the 9 Idaho transportation department, excepting those applications in which any 10 sales or use taxes due have been previously collected by a retailer, shall be 11 a fee for the services of the assessor of the county or the Idaho transporta- 12 tion department in collecting such taxes and shall be paid into the current 13 expense fund of the county or state highway account established in section 14 40-702, Idaho Code. 15 (10) Eleven and five-tenths percent (11.5%) of revenues collected un- 16 der this chapter, following any distributions required by sections 63-3203, 17 63-3620F, and 63-3709, Idaho Code, and by subsection (1) of this section, is 18 continuously appropriated and shall be distributed to the revenue-sharing 19 account, which is hereby created in the state treasury, and the moneys in the 20 revenue-sharing account will be paid in installments each calendar quarter 21 by the state tax commission as follows: 22 (a) Forty-five and two-tenths percent (45.2%) shall be paid to the var- 23 ious cities as follows: 24 (i) The revenue-sharing amount calculated by the state tax com- 25 mission for the various cities for each quarter of fiscal year 2020 26 shall be the base amount for current quarterly revenue distribu- 27 tion amounts. The state tax commission shall calculate the per 28 capita distribution for each city resulting from the previous fis- 29 cal year's distributions. 30 (ii) If there is no change in the amount of the revenue-sharing 31 account from the same quarter of the previous fiscal year, then the 32 various cities shall receive the same amount received for the same 33 quarter of the previous fiscal year. 34 (iii) If the balance of the revenue-sharing account for the cur- 35 rent quarter is greater than the balance of the revenue-sharing 36 account for the same quarter of the previous fiscal year, then: 37 1. If the distributions made to the cities during the same 38 quarter of the previous fiscal year were below the base 39 amount established in fiscal year 2020, then the various 40 cities shall first receive a proportional increase up to the 41 base amount for each city and up to a one-percent (1%) in- 42 crease over such base amount. Any remaining moneys shall be 43 distributed to cities with a below-average per capita dis- 44 tribution in the proportion that the population of that city 45 bears to the population of all cities with below-average per 46 capita distributions within the state. 47 2. If the distributions made to the cities during the same 48 quarter of the previous fiscal year were at or above the 49 base amount established in fiscal year 2020, then the cities 50

20 shall receive the same distribution they received during the 1 same quarter of the previous fiscal year plus a proportional 2 increase up to one percent (1%). Any remaining moneys shall 3 be distributed to the cities with a below-average per capita 4 distribution in the proportion that the population of that 5 city bears to the population of all cities with a below-aver- 6 age per capita distribution within the state. 7 (iv) If the balance of the revenue-sharing account for the cur- 8 rent quarter is less than the balance of the revenue-sharing ac- 9 count for the same quarter of the previous fiscal year, then the 10 cities shall first receive a proportional reduction down to the 11 base amount established in fiscal year 2020. If further reduc- 12 tions are necessary, the cities shall receive reductions based on 13 the proportion that each city's population bears to the population 14 of all cities within the state. 15 (b) Forty-seven and one-tenth percent (47.1%) shall be paid to the var- 16 ious counties as follows: 17 (i) Fifty-nine and eight-tenths percent (59.8%) of the amount to 18 be distributed under this paragraph (b) of this subsection shall 19 be distributed as follows: 20 1. One million three hundred twenty thousand dollars 21 ($1,320,000) annually shall be distributed one forty-fourth 22 (1/44) to each of the various counties; and 23 2. The balance of such amount shall be paid to the various 24 counties, and each county shall be entitled to an amount in 25 the proportion that the population of that county bears to 26 the population of the state; and 27 (ii) Forty and two-tenths percent (40.2%) of the amount to be dis- 28 tributed under this paragraph (b) of this subsection shall be dis- 29 tributed as follows: 30 1. Each county that received a payment under the provisions 31 of section 63-3638(e), Idaho Code, as that subsection ex- 32 isted immediately prior to July 1, 2000, during the fourth 33 quarter of calendar year 1999, shall be entitled to a like 34 amount during succeeding calendar quarters. 35 2. If the dollar amount of money available under this sub- 36 section (10)(b)(ii) in any quarter does not equal the amount 37 paid in the fourth quarter of calendar year 1999, each 38 county's payment shall be reduced proportionately. 39 3. If the dollar amount of money available under this sub- 40 section (10)(b)(ii) in any quarter exceeds the amount paid 41 in the fourth quarter of calendar year 1999, each county 42 shall be entitled to a proportionately increased payment, 43 but such increase shall not exceed one hundred five percent 44 (105%) of the total payment made in the fourth quarter of 45 calendar year 1999. 46 4. If the dollar amount of money available under this sub- 47 section (10)(b)(ii) in any quarter exceeds one hundred five 48 percent (105%) of the total payment made in the fourth quar- 49 ter of calendar year 1999, any amount over and above such 50

21 one hundred five percent (105%) shall be paid to the various 1 counties in the proportion that the population of the county 2 bears to the population of the state; and 3 (c) Seven and seven-tenths percent (7.7%) of the amount appropriated in 4 this subsection shall be paid to the several counties for distribution 5 to special purpose taxing districts as follows: 6 (i) Each such district that received a payment under the provi- 7 sions of section 63-3638(e), Idaho Code, as such subsection ex- 8 isted immediately prior to July 1, 2000, during the fourth quarter 9 of calendar year 1999, shall be entitled to a like amount during 10 succeeding calendar quarters. 11 (ii) If the dollar amount of money available under this subsec- 12 tion (10)(c) in any quarter does not equal the amount paid in the 13 fourth quarter of calendar year 1999, each special purpose taxing 14 district's payment shall be reduced proportionately. 15 (iii) If the dollar amount of money available under this subsec- 16 tion (10)(c) in any quarter exceeds the amount distributed under 17 paragraph (c)(i) of this subsection, each special purpose taxing 18 district shall be entitled to a share of the excess based on the 19 proportion each such district's current property tax budget bears 20 to the sum of the current property tax budgets of all such dis- 21 tricts in the state. Each year, starting with the distribution 22 for the quarter ending December 31, the state tax commission shall 23 calculate this distribution based on the district's current prop- 24 erty tax budgets, including any unrecovered forgone amounts as de- 25 termined under section 63-802(1)(e), Idaho Code. When a special 26 purpose taxing district is situated in more than one (1) county, 27 the state tax commission shall determine the portion attributable 28 to the special purpose taxing district from each county in which it 29 is situated. 30 (iv) If special purpose taxing districts are consolidated, the 31 resulting district is entitled to a base amount equal to the sum of 32 the base amounts received in the last calendar quarter by each dis- 33 trict prior to the consolidation. 34 (v) If a special purpose taxing district is dissolved or disin- 35 corporated, the state tax commission shall continuously distrib- 36 ute to the board of county commissioners an amount equal to the 37 last quarter's distribution prior to dissolution or disincorpora- 38 tion. The board of county commissioners shall determine any re- 39 distribution of moneys so received. 40 (vi) Taxing districts formed after January 1, 2001, are not en- 41 titled to a payment under the provisions of this paragraph (c) of 42 this subsection. 43 (vii) For purposes of this paragraph (c) of this subsection, a spe- 44 cial purpose taxing district is any taxing district that is not a 45 city, a county, or a school district. 46 (viii) Special purpose taxing districts shall use funds received 47 under the provisions of this subsection only for the purposes for 48 which the special purpose taxing districts were formed. 49

22 (11) Amounts calculated in accordance with section 2, chapter 356, laws 1 of 2001, for annual distribution to counties and other taxing districts be- 2 ginning in October 2001 for replacement of property tax on farm machinery and 3 equipment exempted pursuant to section 63-602EE, Idaho Code. For nonschool 4 districts, the state tax commission shall distribute one-fourth (1/4) of 5 this amount certified quarterly to each county. For school districts, the 6 state tax commission shall distribute one-fourth (1/4) of the amount cer- 7 tified quarterly to each school district. For nonschool districts, the 8 county auditor shall distribute such amounts to each district within thirty 9 (30) calendar days from receipt of moneys from the state tax commission. 10 Moneys received by each taxing district for replacement shall be utilized 11 in the same manner and in the same proportions as revenues from property 12 taxation. The moneys remitted to the county treasurer for replacement of 13 property exempt from taxation pursuant to section 63-602EE, Idaho Code, may 14 be considered by the counties and other taxing districts and budgeted at the 15 same time, in the same manner, and in the same year as revenues from taxation 16 on personal property, which these moneys replace. If taxing districts are 17 consolidated, the resulting district is entitled to an amount equal to the 18 sum of the amounts received in the last calendar quarter by each district 19 pursuant to this subsection prior to the consolidation. If a taxing district 20 is dissolved or disincorporated, the state tax commission shall continu- 21 ously distribute to the board of county commissioners an amount equal to the 22 last quarter's distribution prior to dissolution or disincorporation. The 23 board of county commissioners shall determine any redistribution of moneys 24 so received. If a taxing district annexes territory, the distribution of 25 moneys received pursuant to this subsection shall be unaffected. Taxing 26 districts formed after January 1, 2001, are not entitled to a payment under 27 the provisions of this subsection. School districts shall receive an amount 28 determined by multiplying the sum of the year 2000 school district levy mi- 29 nus .004 times the market value on December 31, 2000, in the district of the 30 property exempt from taxation pursuant to section 63-602EE, Idaho Code, pro- 31 vided that the result of these calculations shall not be less than zero (0). 32 The result of these school district calculations shall be further increased 33 by six percent (6%). For purposes of the limitation provided by section 34 63-802, Idaho Code, moneys received pursuant to this section as property tax 35 replacement for property exempt from taxation pursuant to section 63-602EE, 36 Idaho Code, shall be treated as property tax revenues. 37 (12) Amounts necessary to pay refunds as provided in section 63-3641, 38 Idaho Code, to a developer of a retail complex shall be remitted to the demon- 39 stration pilot project fund created in section 63-3641, Idaho Code. 40 (13) Amounts calculated in accordance with section 63-602KK(4), Idaho 41 Code, for annual distribution to counties and other taxing districts for 42 replacement of property tax on personal property tax exemptions pursuant 43 to section 63-602KK(2), Idaho Code, which amounts are continuously ap- 44 propriated unless the legislature enacts a different appropriation for a 45 particular fiscal year. For purposes of the limitation provided by section 46 63-802, Idaho Code, moneys received pursuant to this section as property tax 47 replacement for property exempt from taxation pursuant to section 63-602KK, 48 Idaho Code, shall be treated as property tax revenues. If taxing districts 49 are consolidated, the resulting district is entitled to an amount equal to 50

23 the sum of the amounts that were received in the last calendar year by each 1 district pursuant to this subsection prior to the consolidation. If a taxing 2 district or revenue allocation area annexes territory, the distribution of 3 moneys received pursuant to this subsection shall be unaffected. Taxing 4 districts and revenue allocation areas formed after January 1, 2022, are not 5 entitled to a payment under the provisions of this subsection. 6 (14) For fiscal year 2023 only, a sum of thirty-four million dollars 7 ($34,000,000) shall be distributed each year by the state tax commission to 8 the forty-four (44) counties in the proportion that the expenditures of each 9 county for indigent defense services during county fiscal year 2021, exclud- 10 ing any state funding or grants, bear to the expenditures of all counties 11 in the state for indigent defense services during county fiscal year 2021, 12 excluding any state funding or grants. No later than July 1, 2022, the state 13 public defense commission shall certify to the state tax commission each 14 county's proportionate share of all counties' indigent defense expenses in 15 county fiscal year 2021, excluding any state funding or grants. 16 (15) For fiscal year 2024 and each fiscal year thereafter, two and 17 twenty-five hundredths percent (2.25%) of revenues collected under this 18 chapter, following any distributions required by sections 63-3203, 19 63-3620F, and 63-3709, Idaho Code, and by subsections (1), (10), and (16) 20 of this section, is continuously appropriated and shall be distributed an- 21 nually to the homeowner property tax relief account established in section 22 63-724, Idaho Code. 23 (16) Four and five-tenths percent (4.5%) of revenues collected under 24 this chapter, following any distributions required by sections 63-3620F and 25 63-3709, Idaho Code, and by subsections (1) and (10) of this section, but no 26 less than eighty million dollars ($80,000,000) and no more than one hundred 27 forty million dollars ($140,000,000), shall be distributed as follows: 28 (a) Eighty million dollars ($80,000,000) is continuously appropriated 29 and shall be distributed to the transportation expansion and congestion 30 mitigation fund established in section 40-720, Idaho Code; and 31 (b) The remaining moneys in excess of eighty million dollars 32 ($80,000,000) provided for in this subsection is continuously ap- 33 propriated and shall be apportioned to local units of government for 34 local highway projects in the same percentages provided for in section 35 40-709(1) through (3), Idaho Code. Local units of government may pool 36 funds allocated to them pursuant to this paragraph for local highway 37 projects. 38 (17) Beginning in fiscal year 2024 and each fiscal year thereafter, 39 three hundred thirty million dollars ($330,000,000) shall be distributed 40 annually to the public school income fund created in section 33-903, Idaho 41 Code, and eighty million dollars ($80,000,000) shall be distributed annu- 42 ally to the in-demand careers fund established in section 72-1206, Idaho 43 Code. The state tax commission shall make such transfers in quarterly in- 44 stallments. 45 (18) For fiscal year 2024 and each fiscal year thereafter, two three and 46 twenty-five hundredths percent (2.25%) (3.25%) of revenues collected under 47 this chapter, following any distributions required by sections 63-3203, 48 63-3620F, and 63-3709, Idaho Code, and by subsections (1), (10), and (16) of 49 this section, is continuously appropriated and shall be distributed annu- 50

24 ally to the school district facilities fund established pursuant to section 1 33-911, Idaho Code. 2 (19) One hundred twenty-five million dollars ($125,000,000) collected 3 under this chapter, following any distributions required by sections 4 63-3620F and 63-3709, Idaho Code, and by subsections (1), (10), (15), (16), 5 and (18) of this section is continuously appropriated and shall be dis- 6 tributed to the school modernization facilities fund established in section 7 33-912, Idaho Code. The state tax commission shall make such transfers in 8 quarterly installments. 9 (19) (20) Any moneys remaining over and above those necessary to meet 10 and reserve for payments under other subsections of this section shall be 11 distributed to the general fund. 12 SECTION 29. That Section 67-5771A, Idaho Code, be, and the same is 13 hereby amended to read as follows: 14 67-5771A. PUBLIC SCHOOL HEALTH INSURANCE PARTICIPATION FUND. (1) 15 There is hereby created in the state treasury the public school health insur- 16 ance participation fund. The fund is continuously appropriated to the state 17 department of education for the purpose of funding the actuarially estab- 18 lished onetime amount required for a public school to buy in to the state's 19 medical and dental group insurance plan. The fund shall consist of moneys 20 made available through legislative transfers, appropriations, or as other- 21 wise provided by law and shall be available for use only to publicly funded 22 K-12 educational institutions. Interest earnings from the investment of 23 moneys in the fund shall be returned to the fund. 24 (2) All moneys in the fund shall be used only for onetime expenses as- 25 sociated with accommodating participation into the state's health plan as 26 set forth in this section. The state department of education shall make pay- 27 ment or payments to the office of group insurance for this purpose within a 28 reasonable time of participants being identified. If demand exceeds avail- 29 able funds, the state department of education shall administer the fund on 30 a first-come, first-served basis. No funds may be expended prior to July 1, 31 2022, and any unexpended moneys remaining in the fund after June 30, 2025, 32 shall be transferred by the state controller to the public education stabi- 33 lization fund. If the public education stabilization fund is fully funded, 34 then remaining funds shall be transferred to the general fund public charter 35 school facilities program fund created in section 33-5218, Idaho Code. 36 SECTION 30. That Section 67-6409, Idaho Code, be, and the same is hereby 37 amended to read as follows: 38 67-6409. GENERAL POWERS OF THE AUTHORITY. The authority is hereby 39 granted, has and may exercise all powers necessary or appropriate to carry 40 out and effectuate its corporate purposes, including, without limitation, 41 the following: 42 (a) to sue and be sued in its own name; 43 (b) to have an official seal and to alter the same at pleasure; 44 (c) to have perpetual succession; 45 (d) to maintain an office at such place or places within this state as it 46 may designate; 47

25 (e) to adopt and from time to time amend and repeal bylaws and rules and 1 regulations, not inconsistent with this chapter, to carry into effect the 2 powers and purposes of the authority and the conduct of its business; 3 (f) to make and execute contracts and all other instruments necessary 4 or convenient for the exercise of its powers and functions; 5 (g) to acquire real or personal property, or any interest therein, on 6 either a temporary or long-term basis in the name of the authority by gift, 7 purchase, transfer, foreclosure, lease or otherwise including rights or 8 easements; hold, sell, assign, lease, encumber, mortgage or otherwise dis- 9 pose of any real or personal property, or any interest therein, or mortgage 10 interest owned by it or under its control, custody or in its possession and 11 release or relinquish any right, title, claim, lien, interest, easement 12 or demand however acquired, including any equity or right of redemption in 13 property foreclosed by it and to do any of the foregoing by public sale, with 14 such public bidding as shall be required by the provisions of any other law; 15 (h) to lease or rent any lands, buildings, structures, facilities or 16 equipment from private parties to effectuate the purposes of this act; 17 (i) to enter into agreements or other transactions with and accept 18 grants and the cooperation of the United States or any agency thereof or 19 of the state of Idaho or any agency or governmental subdivision thereof in 20 furtherance of the purposes of this act, including but not limited to the 21 development, maintenance, operation and financing of any facility and to do 22 any and all things necessary in order to avail itself of such aid and cooper- 23 ation; 24 (j) to receive and accept aid or contributions from any source of money, 25 property, labor or other things of value, to be held, used and applied to 26 carry out the purposes of this act subject to such conditions upon which such 27 grants and contributions may be made, including, but not limited to, gifts or 28 grants from any department or agency of the United States or this state or any 29 community college district for any purpose consistent with this act; 30 (k) to employ architects, engineers, attorneys, accountants, building 31 construction and financial experts and such other advisors, consultants and 32 agents as may be necessary in its judgment and to fix their compensation; 33 (l) to procure insurance against any loss in connection with its prop- 34 erty and other assets in such amounts and from such insurers as it deems de- 35 sirable; 36 (m) to invest any funds not needed for immediate use or disbursement, 37 including any funds held in reserve, in: 38 (1) bonds, notes and other obligations of the United States or any 39 agency or instrumentality thereof and other securities secured by such 40 bonds, notes or other obligation; 41 (2) money market funds which are insured or the assets of which are lim- 42 ited to obligations of the United States or any agency or instrumental- 43 ity thereof; 44 (3) time certificates of deposit and savings accounts; 45 (4) commercial paper which, at the time of its purchase, is rated in the 46 highest category by a nationally recognized rating service; and 47 (5) property or securities in which the state treasurer may invest 48 funds in the state treasury pursuant to section 67-1210, Idaho Code. 49

26 (n) to borrow money and issue bonds and notes or other evidences of in- 1 debtedness thereof as hereinafter provided; 2 (o) to the extent permitted under its contract with the holders of 3 bonds, notes and other obligations of the authority to consent to any modifi- 4 cation of any contract, lease or agreement of any kind to which the authority 5 is a party; 6 (p) to manage or operate real and personal property, in the state, take 7 assignments of leases and rentals, proceed with foreclosure actions, or take 8 any other action necessary or incidental to the performance of its corporate 9 duties; 10 (q) to make and enter into all contracts and agreements necessary or in- 11 cidental to the performance of its duties and the execution of its powers un- 12 der this chapter; 13 (r) to plan, carry out, acquire, lease and operate facilities and to 14 provide for the construction, reconstruction, improvement, alteration or 15 repair of any facility or part thereof; 16 (s) to sell, lease, rent or sublease to any state body or community 17 college district, any facility or any space embraced in any facility con- 18 structed or leased under this act, to establish and revise the rents or 19 charges therefor and to do any other acts necessary to the management and 20 operation of its facilities; 21 (t) to do any act necessary or convenient to the exercise of the powers 22 herein granted or reasonably implied therefrom.; and 23 (u) to issue bonds for the state department of education associated 24 with the school modernization facilities fund, pursuant to section 33-913, 25 Idaho Code, which shall be exempt from the provisions of section 67-6410, 26 Idaho Code. 27 SECTION 31. That Section 67-7434, Idaho Code, be, and the same is hereby 28 amended to read as follows: 29 67-7434. LOTTERY DIVIDENDS. (1) Annually, on July 1, the lottery shall 30 transfer three-eighths (3/8) of its net income to the permanent building 31 account; three-eighths (3/8) fund and five-eighths (5/8) of its net income 32 to the school district building account; and one-fourth (1/4) of its net 33 income to the bond levy equalization fund school district facilities fund 34 pursuant to section 33-911, Idaho Code, after reserving sufficient moneys 35 to ensure the continuation of the lottery, as determined by the director and 36 commission. 37 (2) The lottery shall ensure that the distributions made to the per- 38 manent building account and the school district building account, pursuant 39 to the provisions of subsection (1) of this section, shall not be less than 40 the amount those accounts received for fiscal year 2008, provided funds are 41 available at the fiscal year 2008 level. Provided however, in the event the 42 level of available funds is less than the fiscal year 2008 level, one-half 43 (1/2) of the available funds shall be transferred to the permanent building 44 account and one-half (1/2) of the available funds shall be transferred to the 45 school district building account. 46 (3) In the event the lottery determines that an adjustment to an annual 47 transfer as provided in subsection (1) of this section must be made pursuant 48 to the provisions of subsection (2) of this section, the difference shall be 49

27 deducted from the one-fourth (1/4) net income transfer that was to be made to 1 the bond levy equalization fund, and the bond levy equalization fund shall 2 receive the remainder, if any. 3 SECTION 32. That Section 33-356, Idaho Code, be, and the same is hereby 4 amended to read as follows: 5 33-356. SCHOOL BUILDING DESIGN AND ENERGY EFFICIENCY. 6 (1) (a) School districts may seek to qualify for a reduction in building 7 replacement value calculation for qualified, newly constructed public 8 school buildings pursuant to section 33-1019(4), Idaho Code. 9 (b) Each school district that seeks to qualify a newly constructed 10 building for the building replacement value calculation provided for in 11 section 33-1019(4), Idaho Code, shall use integrated design practices 12 and fundamental commissioning in the design and construction of such 13 building. 14 (c) Following the first year of operations of a building that was cer- 15 tified in accordance with the provisions of subsection (5)(a) of this 16 section, the germane school district shall perform or cause to be per- 17 formed an annual optimization review of the qualifying building. Such 18 annual optimization review shall be performed in a manner that is con- 19 sistent with rules promulgated pursuant to this section. Such school 20 district shall thereafter perform or cause to be performed an annual op- 21 timization review each year it seeks to qualify such building for the 22 building replacement value calculation provided in section 33-1019(4), 23 Idaho Code. 24 (2) (1) For purposes of this section, the following terms shall have the 25 following meanings: 26 (a) "Fundamental commissioning" means the use of a third party to re- 27 view building design and building system specifications and to specify 28 and monitor preoccupancy system testing to ensure functional integra- 29 tion of specified systems and functional operation of systems at the 30 completion of a project. 31 (b) "Integrated design" means a process to develop consensus among the 32 project team and owner as to the energy savings and building performance 33 goals of the project and to identify design strategies to achieve those 34 goals, including documentation strategies for design decisions to en- 35 sure accurate implementation of design through construction. 36 (3) (2) It shall be the duty and responsibility of the administrator 37 of the division of occupational and professional licenses to provide assis- 38 tance to school districts to ensure school districts can access the techni- 39 cal and educational support needed to implement the processes of integrated 40 design and fundamental commissioning. It shall further be the duty and re- 41 sponsibility of the administrator of the division of occupational and pro- 42 fessional licenses to compile and cause to be made available to school dis- 43 tricts a list of all third-party building commissioning agents in Idaho and 44 contiguous states. The administrator shall ensure that all commissioning 45 agents that appear on such list are certified by the building commissioning 46 association or other similar certifying entity. The administrator shall en- 47 sure that such list is updated annually. 48

28 (4) (3) The administrator of the division of occupational and profes- 1 sional licenses is hereby authorized and directed to promulgate rules in 2 accordance with the provisions of chapter 52, title 67, Idaho Code, that pro- 3 vide the guidance, education and technical information necessary for school 4 districts to implement the processes of integrated design and fundamental 5 commissioning. The administrator is authorized to expand upon the terms 6 defined in subsection (2) (1) of this section, and to provide additional def- 7 initions as needed. In addition, the administrator shall promulgate rules 8 governing annual optimization review and evaluation of germane building 9 systems to ensure optimal performance of such systems and maximum energy 10 savings and building performance. Such rules shall include, but not be 11 limited to, a definition for the minimum scope of work required for annual 12 optimization. 13 (5)(a) The administrator of the division of occupational and profes- 14 sional licenses shall certify to the state department of education when 15 a building has qualified for school building replacement value calcula- 16 tion exclusions as provided for in section 33-1019(4), Idaho Code. As 17 part of such certification, the administrator shall state specifically 18 the school building(s) and the square footage thereof that shall be ex- 19 cluded from the school building replacement value calculations. 20 (b) Following the first year of operations of a building that was cer- 21 tified in accordance with the provisions of paragraph (a) of this sub- 22 section, the administrator of the division of occupational and profes- 23 sional licenses shall certify to the state department of education when 24 such building has undergone an annual optimization review as provided 25 in subsection (1)(c) of this section. Such certification shall ensure 26 that the qualifying building meets or exceeds the requirements of an- 27 nual optimization review rules promulgated pursuant to subsection (4) 28 of this section. 29 SECTION 33. That Section 33-1018C, Idaho Code, be, and the same is 30 hereby amended to read as follows: 31 33-1018C. PUBLIC EDUCATION STABILIZATION FUND -- REPLACEMENT 32 FUNDS. In the event that moneys are withdrawn from the public education 33 stabilization fund for the circumstances authorized pursuant to section 34 33-1018 or 33-1018B, Idaho Code, then the joint finance-appropriations 35 committee shall consider transferring the amount of the withdrawal as a sup- 36 plemental appropriation to the public education stabilization fund for the 37 current fiscal year. 38 SECTION 34. That Section 33-1102, Idaho Code, be, and the same is hereby 39 amended to read as follows: 40 33-1102. PURPOSES FOR WHICH BONDS MAY BE ISSUED. The purposes for 41 which bonds may be issued shall be: To acquire, purchase or improve a 42 school site or school sites; to build a schoolhouse or schoolhouses or other 43 building or buildings; to demolish or remove school buildings; to add to, 44 remodel or repair any existing building; to furnish and equip any building 45 or buildings, including all lighting, heating, ventilation and sanitation 46 facilities and appliances necessary to maintain and operate the buildings of 47

29 the district; to purchase school buses and to acquire, develop or renovate 1 school facilities to establish, create and develop renewable energy sys- 2 tems as described in section 33-604, Idaho Code. The provisions of section 3 33-906, Idaho Code, shall not apply to bonds or portions of bonds issued to 4 acquire, develop or renovate school energy systems as authorized in section 5 33-604, Idaho Code, when the school district begins to sell thermal energy 6 for revenue as authorized in section 33-605, Idaho Code. 7 SECTION 35. That Section 40-718, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 40-718. GARVEE FUNDS ESTABLISHED -- CAPITAL PROJECT FUND -- DEBT SER- 10 VICE FUND. (1) There is established in the state treasury a fund known as the 11 "GARVEE Capital Project Fund" which shall include: 12 (a) Any draw by the board of proceeds from the transportation bonds or 13 notes issued by the Idaho housing and finance association in accordance 14 with chapter 62, title 67, Idaho Code. 15 (b) Interest earned on the investment of idle moneys in the GARVEE capi- 16 tal project fund shall be paid to the GARVEE capital project fund. 17 Disbursements from this fund shall be made for projects in accordance with 18 chapter 3, title 40, Idaho Code. All moneys in the fund are hereby continu- 19 ously appropriated to the department. 20 (2) There is established in the state treasury a fund known as the 21 "GARVEE Debt Service Fund" for the purpose of paying the principal, interest 22 and other amounts required for transportation bonds or notes of the Idaho 23 housing and finance association in accordance with chapter 62, title 67, 24 Idaho Code. The fund shall include: 25 (a) Amounts transferred from the state highway account upon certifi- 26 cation by the Idaho housing and finance association to the state con- 27 troller, state treasurer and the board as necessary for payment of prin- 28 cipal, interest and other amounts required for transportation bonds or 29 notes. 30 (b) Amounts distributed pursuant to section 63-2520(b)(5)(4), Idaho 31 Code. Provided that such moneys distributed to the GARVEE debt service 32 fund pursuant to this paragraph shall be used in combination with the 33 amounts provided for in paragraph (a) of this subsection and shall be 34 used for payment of principal, interest and other amounts required for 35 transportation bonds or notes. 36 (c) Interest earned on the investment of idle moneys in the GARVEE debt 37 service fund shall be paid to the GARVEE debt service fund. 38 From moneys within this fund, there are hereby continuously appropriated 39 such amounts as, from time to time, shall be certified by the Idaho housing 40 and finance association to the state controller, state treasurer and the 41 board as necessary for payment of principal, interest and other amounts 42 required for transportation bonds or notes of the Idaho housing and finance 43 association in accordance with chapter 62, title 67, Idaho Code, which 44 amounts shall be paid over as directed by the association. 45 SECTION 36. An emergency existing therefor, which emergency is hereby 46 declared to exist, Sections 2 and 3 of this act shall be in full force and ef- 47 fect on and after passage and approval, and retroactively to January 1, 2024, 48

30 and Sections 1 and 4 through 35 shall be in full force and effect on and after 1 July 1, 2024. 2