Senate Study Bill 1194 SENATE FILE BY (PROPOSED COMMITTEE ON REBUILD IOWA BILL BY CHAIRPERSON HOGG) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to flood damage prevention and insurance. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2143SC 83 4 tm/rj/8 PAG LIN 1 1 DIVISION I 1 2 PUBLIC POLICY 1 3 Section 1. LAND MANAGEMENT == PUBLIC POLICY. It is the 1 4 policy of this state that the land in watersheds and 1 5 floodplains should be managed to reduce flooding, reduce flood 1 6 damage, ameliorate the effects of drought, improve water 1 7 quality, improve habitat and the natural environment, increase 1 8 renewable energy production, and enhance economic and 1 9 recreational opportunities. 1 10 DIVISION II 1 11 URBAN WATER CONSERVATION STANDARDS 1 12 Sec. 2. Section 8A.321, subsection 7, Code 2009, is 1 13 amended by adding the following new paragraph: 1 14 NEW PARAGRAPH. c. For real property projects beginning 1 15 construction on or after January 1, 2010, a project must 1 16 incorporate applicable urban water conservation standards 1 17 adopted pursuant to section 455B.277A. 1 18 Sec. 3. NEW SECTION. 15A.5 ECONOMIC DEVELOPMENT 1 19 FINANCIAL ASSISTANCE == URBAN WATER CONSERVATION STANDARDS. 1 20 Financial assistance for economic development shall not be 1 21 given for purposes of a vertical infrastructure project unless 1 22 the project incorporates applicable urban water conservation 1 23 standards adopted pursuant to section 455B.277A. For purposes 1 24 of this section, "vertical infrastructure" means the same as 1 25 defined in section 8.57, subsection 6, paragraph "c". This 1 26 section applies to projects that begin construction on or 1 27 after January 1, 2010. 1 28 Sec. 4. Section 262.9, subsection 4, Code 2009, is amended 1 29 to read as follows: 1 30 4. Manage and control the property, both real and 1 31 personal, belonging to the institutions.The board shall 1 32 purchaseFor any construction project beginning on or after 1 33 January 1, 2010, the project must incorporate applicable urban 1 34 water conservation standards adopted pursuant to section 1 35 455B.277A. 2 1 4A. Purchase or require the purchase of, when the price is 2 2 reasonably competitive and the quality as intended, 2 3 soybean=based inks. All inks purchased that are used 2 4 internally or are contracted for by the board shall be 2 5 soybean=based to the extent formulations for such inks are 2 6 available. 2 7 a. The department of natural resources shall review the 2 8 procurement specifications currently used by the board to 2 9 eliminate, wherever possible, discrimination against the 2 10 procurement of products manufactured with soybean=based inks. 2 11 b. The department of natural resources shall assist the 2 12 board in locating suppliers of recycled content products and 2 13 soybean=based inks and collecting data on recycled content and 2 14 soybean=based ink purchases. 2 15 c. The board, in conjunction with the department of 2 16 natural resources, shall adopt rules to carry out the 2 17 provisions of thissectionsubsection. 2 18 d. The department of natural resources shall cooperate 2 19 with the board in all phases of implementing thissection2 20 subsection. 2 21 Sec. 5. NEW SECTION. 455B.277A URBAN WATER CONSERVATION 2 22 STANDARDS. 2 23 1. By January 1, 2010, the department of natural 2 24 resources, in cooperation with the department of agriculture 2 25 and land stewardship, shall adopt urban water conservation 2 26 standards designed to limit water runoff, reduce future flood 2 27 damage, and improve water quality. 2 28 2. All cities and counties shall adopt development 2 29 standards to incorporate urban water conservation standards 2 30 adopted pursuant to subsection 1 and limit development in 2 31 flood plains. A city or county shall not allow development in 2 32 an area located in a five hundred year flood plain as 2 33 determined by the federal emergency management agency unless 2 34 the development is designed to mitigate future flood damage. 2 35 3. All cities and counties shall do the following: 3 1 a. Only provide public funding for projects that conform 3 2 to urban water conservation standards. 3 3 b. Only provide tax increment financing for projects that 3 4 conform to urban water conservation standards. 3 5 DIVISION III 3 6 FLOOD INSURANCE 3 7 Sec. 6. NEW SECTION. 455B.262A NATIONAL FLOOD INSURANCE 3 8 PROGRAM. 3 9 All cities in this state shall meet the requirements for 3 10 participation in the national flood insurance program on or 3 11 before July 30, 2011. The department shall assist cities with 3 12 developing and administering local flood plain management 3 13 programs and with otherwise meeting the requirements for 3 14 participation in the national flood insurance program. A city 3 15 may apply to the department for a waiver from the 3 16 participation requirements in this section. The department 3 17 shall grant a waiver if it is determined by the department 3 18 that the city is not susceptible to flood damage. 3 19 Sec. 7. NEW SECTION. 505.41 FLOOD INSURANCE. 3 20 By January 1, 2010, a person owning property in a five 3 21 hundred year flood plain as determined by the federal 3 22 emergency management agency shall purchase insurance providing 3 23 coverage against direct or indirect or consequential loss or 3 24 damage, including loss of use or occupancy and the 3 25 depreciation of property lost or damaged by flood unless the 3 26 owner submits a certificate of self=insurance to the 3 27 commissioner of insurance for approval. The commissioner of 3 28 insurance shall develop the form, submission procedure, and 3 29 approval process for certificates of self=insurance. 3 30 Sec. 8. IMPLEMENTATION OF ACT. Section 25B.2, subsection 3 31 3, shall not apply to this division of this Act. 3 32 EXPLANATION 3 33 This bill relates to flood damage prevention and insurance. 3 34 DIVISION I. Division I of the bill states general public 3 35 policy for land management. 4 1 DIVISION II. Division II of the bill relates to urban 4 2 water conservation standards. 4 3 The division requires the department of natural resources, 4 4 in cooperation with the department of agriculture and land 4 5 stewardship, to adopt urban water conservation standards 4 6 designed to limit water runoff, reduce future flood damage, 4 7 and improve water quality. The division requires all cities 4 8 and counties to adopt development standards to incorporate 4 9 urban water conservation standards and limit development in 4 10 flood plains. The division prohibits a city or county from 4 11 allowing development in an area located in a 500 year flood 4 12 plain unless the development is designed to mitigate future 4 13 flood damage. The division requires cities and counties to 4 14 only provide public funding for projects that conform to urban 4 15 water conservation standards and only provide tax increment 4 16 financing for projects that conform to urban water 4 17 conservation standards. 4 18 The division requires construction projects beginning on or 4 19 after January 1, 2010, that are coordinated by the department 4 20 of administrative services to incorporate applicable urban 4 21 water conservation standards. 4 22 The division requires that financial assistance for 4 23 economic development shall not be given for purposes of a 4 24 vertical infrastructure project unless the project 4 25 incorporates applicable urban water conservation standards. 4 26 This requirement applies to projects that begin construction 4 27 on or after January 1, 2010. 4 28 The division requires construction projects beginning on or 4 29 after January 1, 2010, that are under the control of the state 4 30 board of regents to incorporate applicable urban water 4 31 conservation standards. 4 32 DIVISION III. Division III of the bill relates to flood 4 33 insurance. 4 34 The division requires all cities in this state to meet the 4 35 requirements for participation in the national flood insurance 5 1 program on or before July 30, 2011. The division allows the 5 2 application for a waiver from this requirement if the city 5 3 demonstrates to the department of natural resources that the 5 4 city is not susceptible to flood damage. 5 5 The division requires a person owning property in a 500 5 6 year flood plain to purchase insurance providing coverage 5 7 against flood damage unless the owner submits a certificate of 5 8 self=insurance to the insurance commissioner for approval. 5 9 The division requires the insurance to be purchased by January 5 10 1, 2010. 5 11 The division may include a state mandate as defined in Code 5 12 section 25B.3. The division makes inapplicable Code section 5 13 25B.2, subsection 3, which would relieve a political 5 14 subdivision from complying with a state mandate if funding for 5 15 the cost of the state mandate is not provided or specified. 5 16 Therefore, political subdivisions are required to comply with 5 17 any state mandate included in the division. 5 18 LSB 2143SC 83 5 19 tm/rj/8