Senate File 2069 - Introduced SENATE FILE 2069 BY MATHIS A BILL FOR An Act relating to county financing of certain projects by 1 modifying provisions relating to authorization procedures 2 for certain county projects and establishing a county 3 threshold committee. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5329XS (3) 85 md/sc

S.F. 2069 Section 1. Section 331.301, subsection 10, paragraph e, 1 subparagraph (1), subparagraph division (a), Code 2014, is 2 amended to read as follows: 3 (a) The board must follow substantially the authorization 4 procedures of section 331.443 to authorize a lease or 5 lease-purchase contract for personal property which is payable 6 from the general fund. The board must follow substantially 7 the authorization procedures of section 331.443 to authorize 8 a lease or lease-purchase contract for real property which is 9 payable from the general fund if the principal amount of the 10 lease-purchase contract does not exceed the following limits: 11 (i) Four hundred thousand One million dollars in a county 12 having a population of twenty-five thousand or less. 13 (ii) Five hundred thousand Two million dollars in a county 14 having a population of more than twenty-five thousand but not 15 more than fifty thousand. 16 (iii) Six hundred thousand Three million dollars in a county 17 having a population of more than fifty thousand but not more 18 than one hundred thousand. 19 (iv) Eight hundred thousand Four million dollars in a county 20 having a population of more than one hundred thousand but not 21 more than two hundred thousand. 22 (v) One Five million dollars in a county having a population 23 of more than two hundred thousand. 24 Sec. 2. Section 331.441, subsection 2, paragraph b, 25 subparagraph (5), Code 2014, is amended to read as follows: 26 (5) Public buildings, including the site or grounds of, and 27 the erection, equipment, remodeling, or reconstruction of, and 28 additions or extensions to the buildings, and including the 29 provision and maintenance of juvenile detention or shelter care 30 facilities, when the cost principal amount of the bonds does 31 not exceed the following limits: 32 (a) Six hundred thousand One million dollars in a county 33 having a population of twenty-five thousand or less. 34 (b) Seven hundred fifty thousand Two million dollars in a 35 -1- LSB 5329XS (3) 85 md/sc 1/ 6

S.F. 2069 county having a population of more than twenty-five thousand 1 but not more than fifty thousand. 2 (c) Nine hundred thousand Three million dollars in a county 3 having a population of more than fifty thousand but not more 4 than one hundred thousand. 5 (d) One Four million two hundred thousand dollars in a 6 county having a population of more than one hundred thousand 7 but not more than two hundred thousand. 8 (e) One Five million five hundred thousand dollars in a 9 county having a population of more than two hundred thousand. 10 Sec. 3. Section 331.441, subsection 2, paragraph c, 11 subparagraph (9), Code 2014, is amended to read as follows: 12 (9) Public buildings, including the site or grounds of, 13 the erection, equipment, remodeling, or reconstruction of, and 14 additions or extensions to the buildings, and including the 15 provision and maintenance of juvenile detention or shelter care 16 facilities, when the cost principal amount of the bonds exceeds 17 the limits stated in subsection 2 , paragraph “b” , subparagraph 18 (5). 19 Sec. 4. NEW SECTION . 331.441A County threshold committee 20 —— adjustments —— notice. 21 1. The director of the department of management shall 22 appoint a county threshold committee. The committee 23 shall consist of seven members, three of whom shall be 24 representatives of counties, three of whom shall be 25 representatives of private sector contractor organizations, and 26 with the remaining member being the director of the department 27 of management or the director’s designee, who shall serve as 28 chairperson of the committee. A vacancy in the membership of 29 the committee shall be filled by the director. 30 2. The committee shall review the thresholds applicable 31 to county lease and lease-purchase contracts under section 32 331.301, subsection 10, paragraph “e” , subparagraph (1), 33 subparagraph division (a), and to county projects defined as 34 an essential county purpose under section 331.441, subsection 35 -2- LSB 5329XS (3) 85 md/sc 2/ 6

S.F. 2069 2, paragraph “b” , subparagraph (5), or a general county 1 purpose under section 331.441, subsection 2, paragraph “c” , 2 subparagraph (9). The committee shall review price adjustments 3 for all types of such contracts and projects based on changes 4 in the construction price index from the preceding year. Upon 5 completion of the review, the committee may make adjustments in 6 the applicable thresholds for types of contracts and projects 7 based on the price adjustments. However, a threshold shall 8 not be adjusted to an amount that is less than the threshold 9 applicable to a county on July 1, 2014, as provided in section 10 331.301 or section 331.441. An adjusted threshold shall take 11 effect as provided in subsection 3, and shall remain in effect 12 until a new adjusted threshold is established and becomes 13 effective as provided in this section. 14 3. The committee shall meet to conduct the review and 15 make the adjustments described in this section on or before 16 August 1 of every other year, or of every year if determined 17 necessary by the committee. By September 1 of each year in 18 which a committee makes adjustments in the thresholds, the 19 director shall cause an advisory notice to be published in the 20 Iowa administrative bulletin and in a newspaper of general 21 circulation in this state, stating the adjusted thresholds to 22 be in effect on January 1 of the following year, as established 23 by the committee under this section. 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 county finance by modifying provisions 28 relating to the authorization procedures for county projects by 29 raising certain limitation amounts and by establishing a county 30 threshold committee. 31 The bill increases the threshold amounts that determine 32 whether a project can be undertaken using the procedures for 33 essential county purpose bonds when the project involves 34 a lease contract or a lease-purchase contract. The bill 35 -3- LSB 5329XS (3) 85 md/sc 3/ 6

S.F. 2069 increases the threshold amounts in the following manner: For 1 counties with a population of 25,000 or less, the threshold 2 amount is increased from $400,000 to $1 million; for counties 3 with a population of more than 25,000 but not more than 50,000, 4 the threshold amount is increased from $500,000 to $2 million; 5 for counties with a population of more than 50,000 but not more 6 than 100,000, the threshold amount is increased from $600,000 7 to $3 million; for counties with a population of more than 8 100,000 but not more than 200,000, the threshold amount is 9 increased from $800,000 to $4 million; and for counties with 10 a population of more than 200,000, the threshold amount is 11 increased from $1 million to $5 million. 12 The bill modifies the definition of “essential county 13 purpose” to specify that public building projects meet the 14 definition of “essential county purpose” if the principal 15 amount of the bonds does not exceed certain threshold amounts 16 based upon the population of the county. Current law specifies 17 that a public building project meets the definition of an 18 “essential county purpose” if the costs of the project do not 19 exceed certain threshold amounts based upon the population of 20 the county. 21 The bill increases the threshold amounts that determine 22 whether a public building project is an essential county 23 purpose and whether the board of supervisors may follow the 24 authorization procedures for essential county purpose bonds 25 under Code section 331.443. 26 The board may follow the authorization procedures for 27 essential county purpose bonds when the principal amount of the 28 bonds does not exceed the following limits: (1) $1 million 29 in a county having a population of 25,000 or less; (2) $2 30 million in a county having a population of more than 25,000 31 but not more than 50,000; (3) $3 million in a county having a 32 population of more than 50,000 but not more than 100,000; (4) 33 $4 million in a county having a population of more than 100,000 34 but not more than 200,000; (5) $5 million in a county having a 35 -4- LSB 5329XS (3) 85 md/sc 4/ 6

S.F. 2069 population of more than 200,000. 1 The bill modifies the definition of “general county purpose” 2 to specify that public building projects meet the definition of 3 “general county purpose” if the principal amount of the bonds 4 exceeds certain threshold amounts based upon the population 5 of the county. Current law specifies that a public building 6 project meets the definition of “general county purpose” if the 7 costs of the project exceed certain threshold amounts based 8 upon the population of the county. 9 Generally, an essential county purpose bond issuance does 10 not require approval of the voters and a general county purpose 11 bond issuance requires approval of the voters. 12 The bill directs the director of the department of 13 management to appoint a county threshold committee. The 14 committee consists of seven members, three of whom shall 15 be representatives of counties, three of whom shall be 16 representatives of private sector contractor organizations, 17 and the remaining member being the director of the department 18 of management or the director’s designee, who shall serve as 19 chairperson of the committee. 20 The committee is required to review the thresholds 21 applicable to county lease and lease-purchase contracts 22 under Code section 331.301 and to county projects defined 23 as essential purposes or general county purposes under Code 24 section 331.441. The committee is required to review price 25 adjustments for all types of such contracts and projects based 26 on changes in the construction price index from the preceding 27 year. Upon completion of the review, the committee may make 28 adjustments in the applicable thresholds based on the price 29 adjustments. However, a threshold may not be adjusted to an 30 amount that is less than the threshold applicable to a county 31 on July 1, 2014. The committee meets on or before August 1 32 of every other year, or of every year if determined necessary 33 by the committee. By September 1 of each year in which a 34 committee makes adjustments in the thresholds, the director of 35 -5- LSB 5329XS (3) 85 md/sc 5/ 6

S.F. 2069 the department of management shall cause an advisory notice 1 to be published in the Iowa administrative bulletin and in 2 a newspaper of general circulation in this state, stating 3 the adjusted thresholds to be in effect on January 1 of the 4 following year, as established by the committee. 5 -6- LSB 5329XS (3) 85 md/sc 6/ 6