SECTION 1. That Chapter 2, Title 50, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION to be known and is designated as Section 50-221A, Idaho Code, and to read as follows:

50-221A. NOTICE OF INTENT TO ANNEX ELECTION.

(1) Before annexing adjacent territory, a city shall pass a resolution declaring its intent to do so. Said resolution shall be adopted in compliance with all State and local laws and regulations governing the adoption of an ordinance and shall be substantially the same in form and content as the final annexation ordinance.

(2) After passing the resolution described in subsection (1) of this section, the city council shall have printed in the city's official newspaper, as defined by section 50-213, Idaho Code, a legal notice of the city's intent to annex the territory and that a public hearing will be held regarding the proposed annexation. The legal notice shall contain the time, date and place of the hearing and a clear, accurate, and unambiguous description of the area proposed to be annexed and shall be printed for at least fourteen (14) days. Said notice shall also clearly and unambiguously describe the right of any person who will be affected by the proposed annexation to protest the proposed annexation or other interested person. An affected person is any person, natural or legal, who is a resident of or owner of real property in the territory to be annexed. An interested person is any person, natural or legal, who is a resident of the city to which the territory is to be annexed or of the area of impact of the city to which the territory is to be annexed.

(3) Within one (1) week after the last legal notice has been published, the city council shall hold a formal public hearing to give affected persons and interested persons a chance to protest the proposed annexation. This subsection shall not be read to deny any person wishing to submit testimony in support of a proposed annexation the right to do so. Said hearing shall be scheduled for a time and date, and held in such a manner as to maximize the opportunity for affected parties to attend and be heard. In addition to the legal notice specified in this subsection, a notice of hearing shall be printed in the city's official newspaper as defined by section 50-213, Idaho Code, for seven (7) days prior to the hearing and written notices shall be mailed to all owners of record of real property in the area proposed to be annexed no later than seven (7) days before the hearing. If, for any reason, the hearing required in this subsection is postponed or is continued after it is opened, notice for the postponed or continued hearing shall conform to the content and minimum time limits provided in this subsection.

(4) Any affected or interested person or business, as defined in subsection (2) of this section, shall have the right to protest the annexation orally or in writing. A protest includes any objection to the proposed annexation in whole or in part. If no oral protests are received by the council at the public hearing or no written protests are received by the city council, city attorney's office, city clerk, the office of the mayor, or the planning and zoning board of the city before, at, or within five business days after the close of, the public hearing required by subsection (1) of this section, the city council may proceed with annexation proceedings as defined by sections 50-222 through 50-224, Idaho Code.

(5) If any oral or written protests are received by the council as described and within the time limits specified in subsection (4) of this section and the council votes to proceed with the annexation:

(A) The council shall adopt a statement of findings which shall include, among other items, a brief and plain summary of each of the protests received, a brief and plain explanation for the council's decision to proceed in the face of said protests, and the facts on which the findings rest, which statement shall contain no material misrepresentations; and

(B) A special election shall be held on one (1) of the dates specified in section 54-106, Idaho Code, and polling places established in the area to be annexed for the purpose of submitting to the qualified electors residing in the area to be annexed, the question of whether the proposed area shall be annexed into the city. Such election shall be conducted by the city, which is proposing annexation of the adjacent territory, in a manner prescribed by section 50-401 through 50-422, Idaho Code, for general and special city elections. The city to which the territory is to be annexed shall incur all costs of the election. The statement of findings required by subsection (5)(A) of this section shall be made readily available to any person requesting the same and notice of the availability of said statement shall be provided in the city's official newspaper, as defined by section 50-213, Idaho Code at least one week prior to the special election and as early as can reasonably be done following the meeting at which the statement was adopted.

(6) Only if a majority of votes cast by electors in the special election favor annexation may the council then proceed with the annexation proceedings as defined in sections 50-222 through 50-224, Idaho Code; provided, however, that notwithstanding a vote of the electors approving an annexation, no annexation shall be valid which was enacted in violation of any provision of this section or of any provision of section 50-222, Idaho Code.

(7) If, upon canvassing of the votes, it is determined that a majority of the qualified electors who voted in the special election favored annexation, the clerk of the city shall, by abstract of the results of the election, certify the fact to the board of county commissioners. The clerk of such board shall thereupon record the same and transmit the said original abstract of the results of the special election to the office of the Secretary of State. The original abstract shall be filed by the Secretary of State in his office immediately upon receiving the same, and certificates of the filing of such original abstract in his office shall be transmitted to the clerk of the board of the county commissioners and to the clerk of the city. The date of annexation shall be October 1 next following the election and the perfection of the required processes described in sections 50-222 through 50-224, Idaho Code.

(8) The provisions of this section shall not apply to annexations of land, the owner or owners of which have voluntarily initiated the annexation in a written request made directly to the City council of the annexing City and have not made such request because required to so as a condition of any permit or approval or of the purchase or transfer of property; provided; however, that to be exempt from the provisions of this section:

(A) Such annexation shall include only that land owned by the person or persons, including any business entity, requesting annexation; and

(B) Each owner of land to be annexed, where the land to be annexed is owned by more than one person or entity, has joined the request for annexation.

A provision in a covenant, condition, or restriction or other document pertaining to land sales or transfers, or similar transaction or document shall not be considered a written request made directly to the City Council within the meaning of this subsection.

SECTION 2. That Chapter 2, Title 50, Idaho Code, be, and the same is hereby amended by the repeal of existing Section 50-222, Idaho Code, and the substitution of the following section therefore to be designated 50-222:

50-222. ANNEXATION OF ADJACENT TERRITORY.

(1) On and after the date of approval of this enactment, any land lying contiguous or adjacent to any city in the state of Idaho, or to any addition or extension thereof may be annexed by the city only if:

(A) The land is, at the time annexation proceeding are initiated, in the area of city impact and had been brought into said area of impact by strict compliance with the procedures set forth in section 67-6526, Idaho Code; and

(B) The land is laid off into parcels each containing less than five (5) physical acres of land, whether the same shall have been or shall be laid off, subdivided or platted in accordance with any statute of this state or otherwise, or whenever the current owner or proprietor of property or any person by or with his authority, has sold or begun to sell off such contiguous or adjacent land by metes and bounds in tracts not exceeding five (5) acres in a manner demonstrating an intent to develop such land. Provided, however, that nothing herein shall be deemed to authorize the annexation of any parcel containing five (5) physical acres of land or more without the express written consent of its owners made directly to the city council; provided further that any land split that occurred prior to January 1, 1995, and was the result of the placement of public utilities, public roads or highways, or railroad lines through the property shall not be considered an intent to develop such land and shall not be sufficient evidence that the land by present owner has been laid off or subdivided in lots or blocks, and provided further that sales of less than five (5) acres or less to a family member of the owner for the purpose of constructing a residence shall not constitute a sale within the meaning of this section unless such is done for the purpose of avoiding this section. For the purposes of this section, "family member" means a natural person or the spouse of a natural person who is related to the owner by blood, adoption or marriage within the first degree of consanguinity or the children, natural or adopted, of the spouse of a natural person related by blood, adoption or marriage to the owner. If a city has not adopted an area of city impact prior to January 1, 1995, the city shall not be prohibited from annexing adjacent territory if an area of city impact has been adopted in strict compliance with the provisions of section 67-6526, Idaho Code, prior to annexation and all other requirements for annexation have been met. An owner of land of any size may request that the tract of land be annexed by the city whether the land is or is not contained in the city's area of impact by submitting such request in writing to the city council. If the tract of land is surrounded by or borders the city, the council may, by ordinance, declare the land by proper legal description thereof to be a part of such city subject to the limitations of section 50-221A. In any annexation of adjacent territory, the annexation shall include all portions of highways lying wholly or partially within the annexed area.

(2) Railroad right-of-way property may be annexed when property within the city adjoins both sides of the right-of-way notwithstanding any other provision of this section. Provided, that the city may annex only those areas which can be reasonably assumed to be used for orderly development of the city nor shall annexation permit the regulation of such right-of-way property except for taxation purposes or to ensure safe, non-nuisance quality operation of the railroad. Provided, that said council shall not have the power to declare such land, lots or blocks a part of said city, if they will be connected to such city only by the shoestring or strip of land upon a public highway.

(3) Notwithstanding any other provision of law, no city council shall have authority to annex property owned by a county or any entity with the county which property is used as a fairground area under the provisions of chapter 8, title 31, or chapter 2, title 22, Idaho Code, without the consent of the majority of the board of county commissioners of the county in which said property lies.

(4) Notwithstanding any other provisions of law, no city council shall have authority to annex property owned by a non-governmental entity used to provide outdoor recreational activities to the public which has been designated as a planned unit development of fifty (50) acres or more and does not require or utilize any city services without the express written permission of the non-governmental entity whose property is subject to annexation.

SECTION 3. This Act shall be in full force and effect immediately upon its adoption by electors and compliance with the Idaho Code's provisions pertaining to initiative measures approved by the electors. Any annexation which has not become final on the date of this Act's approval by electors shall be subject to the provisions of this law. An annexation has not become final if, on the date of the approval of this Act by electors, the annexation is in litigation and a final, unappealable judicial order and memorandum of decision has not been filed.

SECTION 4. SEVERABILITY CLAUSE. The provisions of this Act shall be severable and the determination that any provision of this Act is unconstitutional or otherwise invalid shall not render any other section invalid.