HF 2057 (LSB 5398YH (5) 85)

HOUSE FILE 2057

BY  HESS

A BILL FOR

An Act relating to real estate transfer receipts and real property enhancement and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 428A.8, subsection 2, unnumbered paragraph 1, Code 2014, is amended to read as follows:

   The treasurer of state shall deposit or transfer the receipts paid the treasurer of state pursuant to subsection 1 to either the general fund of the state, the housing trust fund created in section 16.181, or the shelter assistance fund created in section 16.41, or the real property enhancement fund created in section 455B.118 as follows:
    Sec. 2.  Section 428A.8, subsection 2, paragraph f, Code 2014, is amended to read as follows:
   f.  For the fiscal year beginning July 1, 2014, and each succeeding fiscal year, sixty-five percent of the receipts less eight million dollars shall be deposited in the general fund, thirty percent of the receipts shall be transferred to the housing trust fund, and five percent of the receipts shall be transferred to the shelter assistance fund.  The eight million dollars reduced from the receipts to be deposited in the general fund shall be transferred to the real property enhancement fund.
    Sec. 3.  NEW SECTION.  455B.118  Real property enhancement fund.
   1.  A real property enhancement fund is created in the state treasury under the control of the department and consisting of moneys appropriated by the general assembly, moneys transferred pursuant to section 428A.8, subsection 2, and any other moneys available to and obtained or accepted by the department for placement in the fund. Moneys in the fund are appropriated to the department for purposes of subsection 2. Notwithstanding section 8.33, moneys credited to the fund that remain unexpended or unobligated at the end of a fiscal year shall not revert to any other fund.
   2.  a.  The department shall use moneys in the real property enhancement fund to do all of the following:
   (1)  Expend not more than two million five hundred thousand dollars each fiscal year for rural community enhancement project grants for cities with a population of not more than ten thousand. The grants shall be awarded for purposes of community enhancement and beautification as defined by the department. A grant shall not exceed fifty thousand dollars. The department may contract with an organization for purposes of administering this subparagraph provided the organization does all of the following:
   (a)  Assists communities and organizations in cleanup and beautification projects.
   (b)  Conducts research to assist in the understanding of reasons for littering and illegal dumping.
   (c)  Administers antilittering and beautification education programs.
   (d)  Increases public awareness of the costs of littering.
   (2)  Expend not more than three million five hundred thousand dollars each fiscal year for purposes described in section 455E.11, subsection 2, paragraph “a”, subparagraph (1), subparagraph division (e).
   (3)  Expend not more than five hundred thousand dollars each fiscal year for purposes of identifying and cleaning illegal or open dumping sites, including waste tire sites.
   (4)  Expend not more than one million dollars each fiscal year in the form of a grant to an organization meeting the criteria in subparagraph (1). Moneys awarded under this subparagraph shall be used to assist rural communities in addressing issues related to the image and appearance of their community.
   (5)  Expend not more than five hundred thousand dollars each fiscal year in the form of a grant to an organization meeting the criteria in subparagraph (1) for purposes of public education and awareness in order to increase youth awareness and commitment to service learning for community beautification, establish and fund a litter hotline, and publicize roadside beautification and adoption projects.
   b.  The department may use not more than five percent of the moneys deposited in the fund for administrative purposes.
    Sec. 4.  Section 455E.11, subsection 2, paragraph a, subparagraph (1), subparagraph division (e), Code 2014, is amended to read as follows:
   (e)  Not more than four hundred thousand dollars to the department for purposes of providing funding assistance to eligible communities to address abandoned buildings by promoting waste abatement, diversion, selective dismantlement of building components, and recycling.  The department may supplement the amount allocated from the solid waste account under this paragraph “a” with moneys in the real property enhancement fund as provided in section 455B.118. Eligible communities include a city with a population of five ten thousand or fewer. Eligible costs for program assistance include but are not limited to asbestos and other hazardous material abatement and removal, the recovery processing of recyclable or reusable material through the selective dismantlement of abandoned buildings, and reimbursement for purchased recycled content materials used in the renovation of buildings. For projects that support community beautification, the department may elect to administer funding to eligible communities in collaboration with the organization awarded the beautification grant in accordance with subparagraph division (a), subparagraph subdivision (i).
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to real estate transfer receipts and real property enhancement.
   Each fiscal year beginning with the fiscal year beginning July 1, 2014, the bill transfers $8 million of real estate transfer receipts that are currently deposited in the general fund to the real property enhancement fund created in the bill.
   The bill creates a real property enhancement fund under the control of the department of natural resources. The bill requires the department to use moneys in the fund for five purposes specified in the bill.
   The department is required to expend not more than $2.5 million each fiscal year for rural community enhancement project grants. The department may contract with an organization for purposes of administering the grants.
   The department is required to expend not more than $3.5 million each fiscal year for purposes of providing assistance to communities to address abandoned buildings by promoting waste abatement, diversion, selective dismantlement of building components, and recycling.
   The department is required to expend not more than $500,000 each fiscal year for purposes of identifying and cleaning illegal or open dumping sites, including waste tire sites.
   The department is required to expend not more than $1 million each fiscal year in the form of a grant to an organization for providing assistance to rural communities in addressing issues related to image and appearance of their community.
   The department is required to expend not more than $500,000 each fiscal year in the form of a grant to an organization for purposes of certain public education and awareness activities.
   The bill allows the department to use not more than 5 percent of the moneys deposited in the fund for administrative purposes.
   The bill amends the solid waste account of the groundwater protection fund. Currently, not more than $400,000 from the account may be used by the department to provide funding assistance to eligible communities to address abandoned buildings by promoting waste abatement, diversion, selective dismantlement of building components, and recycling and to administer funding to communities in collaboration with an organization awarded a beautification grant. Eligible communities include a city with a population of 5,000 or fewer. The bill increases the population limit for eligible communities to 10,000. The bill also provides that moneys in the real property enhancement fund may supplement moneys allocated from the solid waste account.