HF 2434 (LSB 6174HV (2) 88)

HOUSE FILE 2434

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO HSB 631)

A BILL FOR

An Act relating to county emergency medical services by modifying provisions relating to optional taxes for emergency medical services.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422D.1, Code 2020, is amended to read as follows:
   422D.1  Authorization —— election —— imposition and repeal —— use of revenues.
   1.  a.  A Upon adoption of a resolution declaring emergency medical services to be an essential county service under subsection 1A, and subject to the limitations of this chapter, a county board of supervisors may offer for voter approval impose any of the following taxes or a combination of the following taxes:
   (1)  Local option income surtax.
   (2)  An ad valorem property tax.
   b.  Revenues generated from these taxes shall be used for emergency medical services as provided in section 422D.6.
   1A.  a.  To be effective, the resolution declaring emergency medical services to be an essential service shall be considered and voted on for approval at two meetings of the board prior to the meeting at which the resolution is to be finally approved by a majority of the board by recorded vote, as defined in section 331.101. Notice of the first meeting of the board at which the resolution is considered and voted on shall be published not less than sixty days prior to the date of the meeting in one or more newspapers that meet the requirements of section 618.14. The requirements for approval of the resolution or approval of the imposition of a tax under this chapter shall not be suspended or waived by the board.
   b.  Each county for which a resolution has been adopted under this subsection shall coordinate efforts between the county emergency management coordinator and the local emergency medical services agencies to establish a county emergency medical services system advisory council to assist in researching and assessing the service needs of the county and guiding implementation of services in the county within a council structure and in the manner provided in the most recently updated Iowa emergency medical services system standards.
   c.  The county emergency medical services system advisory council established under paragraph “b” shall annually assess and review the emergency medical services needs of the county and shall include the results of such review and assessment in an annual report filed with the board of supervisors. The annual report shall be publicly available upon filing with the board of supervisors. The board of supervisors shall receive public comment regarding the report at one or more meetings of the board of supervisors. Any meeting of the board of supervisors at which public comment on the annual report is heard shall be at least fourteen days following the date the annual report is filed with the board of supervisors.
   2.  a.  The taxes for emergency medical services shall only be imposed after an election at which a majority of those voting on the question of imposing the tax or combination of taxes specified in subsection 1, paragraph “a”, subparagraph (1) or (2), vote in favor of the question. However, the A tax or combination of taxes specified in subsection 1 shall not be imposed on property within or on residents of a benefited emergency medical services district under chapter 357F. The question of imposing the tax or combination of the taxes may be submitted at the regular city election, a special election, or the general election. Notice of the question shall be provided by publication at least sixty days before the time of the election and shall identify the tax or combination of taxes and the rate or rates, as applicable. If a majority of those voting on the question approve the imposition of the tax or combination of taxes, the The tax or combination of taxes shall may be imposed as follows:
   (1)  A local option income surtax shall may be imposed for tax years beginning on or after January 1 of the fiscal year in which the favorable election was held ordinance imposing the surtax is filed with the director under section 422D.3.
   (2)  An ad valorem property tax shall may be imposed for the fiscal year in which the election was held resolution under subsection 1A is adopted.
   b.  Before a county imposes an income surtax as specified in subsection 1, paragraph “a”, subparagraph (1), a benefited emergency medical services district in the county shall be dissolved, and the county shall be liable for the outstanding obligations of the benefited district. If the benefited district extends into more than one county, the county imposing the income surtax shall be liable for only that portion of the obligations relating to the portion of the benefited district in the county.
   3.  Revenues received by the county from the taxes imposed under this chapter shall be deposited into the emergency medical services trust fund created pursuant to section 422D.6 and shall be used as provided in that section.
   4.  Any tax or combination of taxes imposed shall be for a maximum period of five years.  Discontinuance of the authority to impose a tax under this chapter shall be by petition and election. Upon receipt of a valid petition as provided in section 331.306, the board of supervisors shall direct the county commissioner of elections to submit to the voters of the county the question of whether to discontinue the authority to impose one or more of the taxes under this chapter. If a majority of those voting on the question of discontinuance of the board’s authority to impose the tax favors discontinuance, the board shall not impose the property tax for any fiscal year beginning after the election approving the discontinuance and shall not impose the income surtax for any tax year beginning after the election approving the discontinuance unless imposition is subsequently again authorized at election. Following discontinuance of the authority to impose the taxes under this chapter, authority to reimpose the taxes requires approval in accordance with this section.
    Sec. 2.  Section 422D.3, subsection 1, Code 2020, is amended to read as follows:
   1.  A local income surtax shall be imposed January 1 of the fiscal year in which the favorable election was held ordinance imposing the surtax is filed with the director under subsection 3 for tax years beginning on or after January 1, and is repealed as provided in section 422D.1, subsection 4, as of December 31 for tax years beginning after December 31.
    Sec. 3.  Section 422D.5, Code 2020, is amended to read as follows:
   422D.5  Property tax levy.
   A county may levy an emergency medical services tax at the rate set by the board of supervisors and approved at the election as provided in section 422D.1, on all taxable property in the county for fiscal years beginning with the fiscal year in which the favorable election was held resolution under subsection 1A is adopted. The reason for imposing the tax and the amount needed shall be set out on the ballot. The rate shall be set so as to raise only the amount needed. The authority to impose the levy is repealed for subsequent fiscal years may be discontinued as provided in section 422D.1, subsection 4.
    Sec. 4.  Section 422D.6, Code 2020, is amended to read as follows:
   422D.6  Emergency medical services trust fund.
   1.  A county authorized to impose a tax under this chapter shall establish an emergency medical services trust fund into which revenues received from the taxes imposed shall be deposited. Moneys in the trust fund shall be used for any operational cost of providing emergency medical services. In addition, moneys in the fund may be used for the purpose of matching federal or state funds for education and training related to emergency medical services.  Moneys remaining in the fund following discontinuance of the authority to impose the taxes as provided in section 422D.1, subsection 4, shall remain in the fund and may be expended for the purposes specified in this section.
   2.  A county may enter into chapter 28E agreements with other counties in order to ensure adequate coverage of the county’s service area.
   3.  Costs which are eligible for emergency medical services trust fund expenditures include, but are not limited to:
   a.  Defibrillators.
   b.  Nondisposable essential ambulance equipment, as defined by rule by the Iowa department of public health.
   c.  Communications pagers, radios, and base repeaters.
   d.  Training in the use of emergency medical services equipment.
   e.  Vehicles including, but not limited to, ambulances, fire apparatus, boats, rescue/first response vehicles, and snowmobiles.
   f.  Automotive parts.
   g.  Buildings.
   h.  Land.
    Sec. 5.  IMPLEMENTATION.  This Act shall not affect the imposition and collection of taxes under chapter 422D in effect on July 1, 2020, and such taxes shall continue to be imposed and administered until the period of authority to impose such taxes in effect immediately prior to July 1, 2020, expires.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Code chapter 422D authorizes counties to impose a property tax levy, an income surtax, or a combination of both taxes within the county, excluding those areas within a benefited emergency medical services district under Code chapter 357F, to be used for emergency medical services, if the taxes are approved at election.
   This bill strikes the requirement for an election to authorize the imposition of the property tax or income surtax and, instead, establishes a requirement for counties, prior to receiving authority to impose the property tax levy and income surtax, to adopt a resolution declaring emergency medical services to be an essential service within the county. The bill establishes the procedural requirement for adoption of the resolution and provides that the requirements for approval of the resolution or approval of the imposition of a tax shall not be suspended or waived by the board. In addition, each county for which such a resolution has been adopted shall coordinate efforts between the county emergency management coordinator and the local emergency medical services agencies to establish a county emergency medical services system advisory council to assist in researching and assessing the service needs of the county and guiding implementation of services in the county within a council structure and in the manner provided in the most recently updated Iowa emergency medical services system standards. The bill establishes annual emergency medical service assessment and reporting requirements for each county emergency medical services system advisory council.
   Code chapter 422D currently provides that imposition of the taxes or combination of taxes is for a maximum period of five years. The bill removes the five-year limitation and provides that discontinuance of the county’s authority to impose the taxes is required to be by petition of eligible electors and election. The bill also specifies that a county may not impose the taxes for any fiscal year or tax year, as applicable, beginning after the election approving the discontinuance of authority unless subsequently again approved for imposition. Following discontinuance of authority, authority to reimpose the taxes requires approval in accordance with Code section 422D.1, as amended in the bill.
   The bill also strikes the limitation that counties, when entering into Code chapter 28E agreements to ensure adequate coverage of the county’s service area, may only enter into such agreements with other counties.
   The bill also modifies provisions governing the permissible uses of tax revenues deposited into the county emergency medical services trust fund by striking language enumerating some eligible expenditures and instead specifies that moneys in the trust fund shall be used for any operational cost of providing emergency medical services.
   The bill does not affect the imposition and collection of taxes under Code chapter 422D in effect on July 1, 2020, and such taxes shall continue to be imposed and administered until the period of authority to impose such taxes in effect immediately prior to July 1, 2020, expires.