BOISE - A proposal to amend the state's Constitution in relation to an Idaho Supreme Court ruling two years ago that changed how governments fund projects was introduced to state lawmakers Friday.

The proposal would create exemptions for when municipalities would need two-thirds of voter approval to incur debt on projects. The legislation stems from the 2006 decision of City of Boise vs. Frazier that ruled "ordinary and necessary" expenses had to have voter approval unless municipalities were in an emergency.

Public officials have said the decision created uncertainty and have minimized the ability to fund projects or sign contracts. The proposal is sponsored by the Idaho Association of Counties, the Association of Idaho Cities and the Idaho Hospital Association.

"This is to clarify when a vote is required and when a vote is not required," Dan Chadwick, executive director for the IAC, said after the meeting.

According to the legislation, the two-thirds voter supermajority requirement would remain for many general obligation bonds. The changes would:

* allow a majority vote (51 percent) on facilities that are funded by voluntary fees, such as improving parking or recreational facilities.

* authorize public hospitals to fund projects or sign leases and incur debt without voter authorization as long as tax revenue is not used in the projects.

* allow governments to enter into contracts or leases that are five years or less in longevity, or are paid only by user fees.

The resolution is expected to be scheduled for a hearing. It must then pass committee and two-thirds of the Senate. Then it must pass a House committee and two-thirds of the House before being approved by at least half the voters.

Constitutional amendments do not need approval by a governor. Unlike other states, Idaho's Constitution cannot be amended by a direct voter initiative.

In 2004, the city of Boise received a judge's permission for a $27 million plan to expand the city's airport's parking garage. But David Frazier - a local photographer and government watchdog - sued the city. The court ruled in his favor and said Idaho's Constitution allows governments to bypass the voters only in an emergency.

Reached for comment Friday, Frazier said the court was clear how municipalities can incur debt and that the resolution will remove the public's oversight.

"It takes away citizen oversight of long-term debt," said Frazier, adding that he was asked but declined to participate in drafting the legislation. "That's their goal - to not have to be responsible to their citizens."

Twin Falls County Commission Chairman–Tom Mikesell said Friday that the county would lose if it was challenged about whether some of its vehicles were "ordinary and necessary" expenses.

"How can we keep continuing to serve the public when we can't buy or lease new equipment?" he asked. "We would like it (the laws) better defined."

Twin Falls Mayor Lance Clow, who serves as president of the Association of Idaho Cities, said the decision has caused banks to be more cautious in loaning to cities. Clow said the banks could possibly lose money if cities' spending decisions are challenged in court and cities lose.

"Things we used to finance, for a few years now, we have to accumulate the cash, pay for it, and now it's really changed our budgeting and forced us into a new way of doing business," he said.

A separate proposal from the IHA would only address hospitals. Its provisions are included in the other bill, but it was proposed because it's late in the legislative session and the IHA still wants to get something passed, said Chadwick.

Jared S. Hopkins may be reached at 420-8371 or jhopkins@magicvalley.com