HSB 626 (LSB 6126YC (2) 85)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON SCHULTZ)

A BILL FOR

An Act relating to the period of time for issuing bonds by cities and counties for certain disaster-related purposes and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 331.441, subsection 2, paragraph b, subparagraphs (18) and (19), Code 2014, are amended to read as follows:
   (18)  The remediation, restoration, repair, cleanup, replacement, and improvement of property, buildings, equipment, and public facilities that have been damaged by a disaster as defined in section 29C.2 and that are located in an area that the governor has proclaimed a disaster emergency or the president of the United States has declared a major disaster. Bonds issued pursuant to section 331.443 for the purposes specified in this subparagraph shall be issued not later than ten fifteen years after the governor has proclaimed a disaster emergency or the president of the United States has declared a major disaster, whichever is later.
   (19)  The reimbursement of the county’s general fund or other funds of the county for expenditures made related to remediation, restoration, repair, and cleanup of damage caused by a disaster as defined in section 29C.2, if the damage is located in an area that the governor has proclaimed a disaster emergency or the president of the United States has declared a major disaster. Bonds issued pursuant to section 331.443 for the purposes specified in this subparagraph shall be issued not later than ten fifteen years after the governor has proclaimed a disaster emergency or the president of the United States has declared a major disaster, whichever is later.
    Sec. 2.  Section 384.24, subsection 3, paragraphs w and x, Code 2014, are amended to read as follows:
   w.  The remediation, restoration, repair, cleanup, replacement, and improvement of property, buildings, equipment, and public facilities that have been damaged by a disaster as defined in section 29C.2 and that are located in an area that the governor has proclaimed a disaster emergency or the president of the United States has declared a major disaster. Bonds issued pursuant to section 384.25 for the purposes specified in this paragraph shall be issued not later than ten fifteen years after the governor has proclaimed a disaster emergency or the president of the United States has declared a major disaster, whichever is later.
   x.  The reimbursement of the city’s general fund or other funds of the city for expenditures made related to remediation, restoration, repair, and cleanup of damage caused by a disaster as defined in section 29C.2, if the damage is located in an area that the governor has proclaimed a disaster emergency or the president of the United States has declared a major disaster. Bonds issued pursuant to section 384.25 for the purposes specified in this paragraph shall be issued not later than ten fifteen years after the governor has proclaimed a disaster emergency or the president of the United States has declared a major disaster, whichever is later.
    Sec. 3.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   Current Code sections 331.441 and 384.24 define “essential county purpose” and “essential corporate purpose” to include the remediation, restoration, repair, cleanup, replacement, and improvement of property, buildings, equipment, and public facilities that have been damaged by a disaster and that are located in a declared disaster area and the reimbursement of the county or city’s general fund or other funds for expenditures made related to remediation, restoration, repair, and cleanup of damage caused by a disaster if the damage is located in a declared disaster area. Current law requires that the essential county purpose bonds or the essential corporate purpose bonds issued for these disaster-related purposes be issued not later than 10 years after the governor has proclaimed a disaster emergency or the President of the United States has declared a major disaster, whichever is later. This bill changes the limitation on the period of time for the issuance of the bonds from 10 years to 15 years.
   The bill takes effect upon enactment.