H.F. 2057 Section 1. Section 428A.8, subsection 2, unnumbered 1 paragraph 1, Code 2014, is amended to read as follows: 2 The treasurer of state shall deposit or transfer the 3 receipts paid the treasurer of state pursuant to subsection 4 1 to either the general fund of the state, the housing trust 5 fund created in section 16.181 , or the shelter assistance fund 6 created in section 16.41 , or the real property enhancement fund 7 created in section 455B.118 as follows: 8 Sec. 2. Section 428A.8, subsection 2, paragraph f, Code 9 2014, is amended to read as follows: 10 f. For the fiscal year beginning July 1, 2014, and each 11 succeeding fiscal year, sixty-five percent of the receipts 12 less eight million dollars shall be deposited in the general 13 fund, thirty percent of the receipts shall be transferred to 14 the housing trust fund, and five percent of the receipts shall 15 be transferred to the shelter assistance fund. The eight 16 million dollars reduced from the receipts to be deposited in 17 the general fund shall be transferred to the real property 18 enhancement fund. 19 Sec. 3. NEW SECTION . 455B.118 Real property enhancement 20 fund. 21 1. A real property enhancement fund is created in the state 22 treasury under the control of the department and consisting 23 of moneys appropriated by the general assembly, moneys 24 transferred pursuant to section 428A.8, subsection 2, and any 25 other moneys available to and obtained or accepted by the 26 department for placement in the fund. Moneys in the fund are 27 appropriated to the department for purposes of subsection 2. 28 Notwithstanding section 8.33, moneys credited to the fund that 29 remain unexpended or unobligated at the end of a fiscal year 30 shall not revert to any other fund. 31 2. a. The department shall use moneys in the real property 32 enhancement fund to do all of the following: 33 (1) Expend not more than two million five hundred thousand 34 dollars each fiscal year for rural community enhancement 35 -1- LSB 5398YH (5) 85 tm/sc 1/ 5

H.F. 2057 project grants for cities with a population of not more than 1 ten thousand. The grants shall be awarded for purposes of 2 community enhancement and beautification as defined by the 3 department. A grant shall not exceed fifty thousand dollars. 4 The department may contract with an organization for purposes 5 of administering this subparagraph provided the organization 6 does all of the following: 7 (a) Assists communities and organizations in cleanup and 8 beautification projects. 9 (b) Conducts research to assist in the understanding of 10 reasons for littering and illegal dumping. 11 (c) Administers antilittering and beautification education 12 programs. 13 (d) Increases public awareness of the costs of littering. 14 (2) Expend not more than three million five hundred 15 thousand dollars each fiscal year for purposes described in 16 section 455E.11, subsection 2, paragraph “a” , subparagraph (1), 17 subparagraph division (e). 18 (3) Expend not more than five hundred thousand dollars each 19 fiscal year for purposes of identifying and cleaning illegal or 20 open dumping sites, including waste tire sites. 21 (4) Expend not more than one million dollars each fiscal 22 year in the form of a grant to an organization meeting the 23 criteria in subparagraph (1). Moneys awarded under this 24 subparagraph shall be used to assist rural communities in 25 addressing issues related to the image and appearance of their 26 community. 27 (5) Expend not more than five hundred thousand dollars 28 each fiscal year in the form of a grant to an organization 29 meeting the criteria in subparagraph (1) for purposes of 30 public education and awareness in order to increase youth 31 awareness and commitment to service learning for community 32 beautification, establish and fund a litter hotline, and 33 publicize roadside beautification and adoption projects. 34 b. The department may use not more than five percent of the 35 -2- LSB 5398YH (5) 85 tm/sc 2/ 5

H.F. 2057 moneys deposited in the fund for administrative purposes. 1 Sec. 4. Section 455E.11, subsection 2, paragraph a, 2 subparagraph (1), subparagraph division (e), Code 2014, is 3 amended to read as follows: 4 (e) Not more than four hundred thousand dollars to the 5 department for purposes of providing funding assistance 6 to eligible communities to address abandoned buildings by 7 promoting waste abatement, diversion, selective dismantlement 8 of building components, and recycling. The department may 9 supplement the amount allocated from the solid waste account 10 under this paragraph “a” with moneys in the real property 11 enhancement fund as provided in section 455B.118. Eligible 12 communities include a city with a population of five ten 13 thousand or fewer. Eligible costs for program assistance 14 include but are not limited to asbestos and other hazardous 15 material abatement and removal, the recovery processing 16 of recyclable or reusable material through the selective 17 dismantlement of abandoned buildings, and reimbursement for 18 purchased recycled content materials used in the renovation of 19 buildings. For projects that support community beautification, 20 the department may elect to administer funding to eligible 21 communities in collaboration with the organization awarded the 22 beautification grant in accordance with subparagraph division 23 (a), subparagraph subdivision (i). 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill relates to real estate transfer receipts and real 28 property enhancement. 29 Each fiscal year beginning with the fiscal year beginning 30 July 1, 2014, the bill transfers $8 million of real estate 31 transfer receipts that are currently deposited in the general 32 fund to the real property enhancement fund created in the bill. 33 The bill creates a real property enhancement fund under 34 the control of the department of natural resources. The bill 35 -3- LSB 5398YH (5) 85 tm/sc 3/ 5

H.F. 2057 requires the department to use moneys in the fund for five 1 purposes specified in the bill. 2 The department is required to expend not more than $2.5 3 million each fiscal year for rural community enhancement 4 project grants. The department may contract with an 5 organization for purposes of administering the grants. 6 The department is required to expend not more than $3.5 7 million each fiscal year for purposes of providing assistance 8 to communities to address abandoned buildings by promoting 9 waste abatement, diversion, selective dismantlement of building 10 components, and recycling. 11 The department is required to expend not more than $500,000 12 each fiscal year for purposes of identifying and cleaning 13 illegal or open dumping sites, including waste tire sites. 14 The department is required to expend not more than $1 million 15 each fiscal year in the form of a grant to an organization for 16 providing assistance to rural communities in addressing issues 17 related to image and appearance of their community. 18 The department is required to expend not more than $500,000 19 each fiscal year in the form of a grant to an organization for 20 purposes of certain public education and awareness activities. 21 The bill allows the department to use not more than 5 22 percent of the moneys deposited in the fund for administrative 23 purposes. 24 The bill amends the solid waste account of the groundwater 25 protection fund. Currently, not more than $400,000 from the 26 account may be used by the department to provide funding 27 assistance to eligible communities to address abandoned 28 buildings by promoting waste abatement, diversion, selective 29 dismantlement of building components, and recycling and 30 to administer funding to communities in collaboration with 31 an organization awarded a beautification grant. Eligible 32 communities include a city with a population of 5,000 or 33 fewer. The bill increases the population limit for eligible 34 communities to 10,000. The bill also provides that moneys 35 -4- LSB 5398YH (5) 85 tm/sc 4/ 5