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Senate Study Bill 2110

Bill Text

  1  1    Section 1.  Section 357H.1, Code Supplement 1997, is
  1  2 amended to read as follows:
  1  4    The board of supervisors of a county with less than eleven
  1  5 thousand five hundred residents but more than ten thousand
  1  6 five hundred residents, based upon the 1990 certified federal
  1  7 census, and with a private lake development, shall designate
  1  8 an area surrounding the lake, if it is an unincorporated area
  1  9 of the county, a rural improvement zone upon receipt of a
  1 10 petition pursuant to section 357H.2, and upon the board's
  1 11 determination that the area is in need of improvements.  For
  1 12 purposes of this chapter, "improvements" means dredging,
  1 13 installation of erosion control measures, land acquisition,
  1 14 and related improvements within or outside of the boundaries
  1 15 of the zone.
  1 16    For purposes of this chapter, "board" means the board of
  1 17 supervisors of the county.
  1 18    Sec. 2.  Section 357H.6, Code Supplement 1997, is amended
  1 19 to read as follows:
  1 21    The election of trustees of a rural improvement zone shall
  1 22 take place at a special election on ballots which shall not
  1 23 reflect a nominee's political affiliation.  Nomination shall
  1 24 be made by petition in accordance with chapter 45.  The
  1 25 petition form shall be furnished by the county commissioner of
  1 26 elections, signed by eligible electors of the rural
  1 27 improvement zone equal in number to one percent of the vote
  1 28 cast within the zone for governor in the last previous general
  1 29 election, and shall be filed with the county commissioner of
  1 30 elections.  A plurality shall be sufficient to elect the five
  1 31 trustees of the rural improvement zone, and no primary
  1 32 election for that office shall be held.  At the original
  1 33 election, two trustees shall be elected for one year, two for
  1 34 two years, and one for three years.  The terms of the
  1 35 succeeding trustees are for three years.  The terms of the
  2  1 trustees shall begin immediately after their election and
  2  2 certification.  The trustees must be residents of the zone.
  2  3 Vacancies on the board shall be filled by appointment by the
  2  4 remaining trustees.
  2  5    Sec. 3.  Section 357H.8, Code Supplement 1997, is amended
  2  6 to read as follows:
  2  9    To provide funds for the payment of the costs of
  2 10 improvement projects and for the payment of other activities
  2 11 authorized pursuant to section 357H.7, the board of trustees
  2 12 may borrow money and issue and sell certificates or may enter
  2 13 into contracts or other obligations payable from a sufficient
  2 14 portion of the future receipts of tax revenue authorized
  2 15 pursuant to section 357H.9 and the standby tax in subsection 4
  2 16 of this section.  The receipts shall be pledged to the payment
  2 17 of principal of and interest on the certificates, contracts,
  2 18 or other obligations.
  2 19    1.  Certificates may be sold at public sale or at private
  2 20 sale at par, premium, or discount at the discretion of the
  2 21 board of trustees.  Chapter 75 does not apply to the issuance
  2 22 of these certificates.
  2 23    2.  Certificates may be issued with respect to a single
  2 24 improvement project or multiple projects and may contain terms
  2 25 or conditions as the board of trustees may provide by
  2 26 resolution authorizing the issuance of the certificates.
  2 27 However, certificates shall not be issued after January 1,
  2 28 2007, except to refund other certificates as provided in
  2 29 subsection 3.
  2 30    3.  Certificates issued to refund other certificates may be
  2 31 sold at public sale or at private sale as provided in this
  2 32 section with the proceeds from the sale to be used for the
  2 33 payment of the certificates being refunded.  The refunding
  2 34 certificates may be exchanged in payment and discharge of the
  2 35 certificates being refunded, in installments at different
  3  1 times, or an entire issue or series at one time.  Refunding
  3  2 certificates may be sold or exchanged at any time on, before,
  3  3 or after the maturity of the outstanding certificates to be
  3  4 refunded, may be issued for the purpose of refunding a like,
  3  5 greater, or lesser principal amount of certificates, and may
  3  6 bear a rate of interest higher or lower than, or equivalent
  3  7 to, the rate of interest on certificates being renewed or
  3  8 refunded.
  3  9    4.  To further secure the payment of the certificates, the
  3 10 board of trustees shall, by resolution, provide for the
  3 11 assessment of an annual levy of a standby tax upon all taxable
  3 12 property within the rural improvement zone.  A copy of the
  3 13 resolution shall be sent to the county auditor.  The revenues
  3 14 from the standby tax shall be deposited in a special fund and
  3 15 shall be expended only for the payment of principal of and
  3 16 interest on the certificates issued as provided in this
  3 17 section, when the receipt of tax revenues pursuant to section
  3 18 357H.9 is insufficient.  If payments are necessary and made
  3 19 from the special fund, the amount of the payments shall be
  3 20 promptly repaid into the special fund from the first available
  3 21 payments received which are not required for the payment of
  3 22 principal of or interest on certificates due.  No reserves may
  3 23 be built up in the special fund in anticipation of a projected
  3 24 default.  The board of trustees shall adjust the annual
  3 25 standby tax levy for each year to reflect the amount of
  3 26 revenues in the special fund and the amount of principal and
  3 27 interest which is due in that year.
  3 28    5.  Before certificates, contracts, or other obligations
  3 29 are issued or entered into, the board of trustees shall
  3 30 publish a notice of its intention to issue the certificates,
  3 31 stating the amount, the purpose, and the improvement project
  3 32 or projects for which the certificates, contracts, or other
  3 33 obligations are to be issued or entered into.  A person may,
  3 34 within fifteen days after the publication of the notice,
  3 35 appeal the decision of the board of trustees in proposing to
  4  1 issue the certificates or to enter into the contracts or other
  4  2 obligations to the district court in the county in which the
  4  3 rural improvement zone exists.  The action of the board of
  4  4 trustees in determining to issue the certificates or to enter
  4  5 into the contracts or other obligations is final and
  4  6 conclusive unless the district court finds that the board of
  4  7 trustees has exceeded its legal authority.  An action shall
  4  8 not be brought which questions the legality of the
  4  9 certificates, contracts, or other obligations, the power of
  4 10 the board of trustees to issue the certificates or to enter
  4 11 into the contracts or other obligations, the effectiveness of
  4 12 any proceedings relating to the authorization of the project,
  4 13 or the authorization and issuance of the certificates or
  4 14 entrance into the contracts or other obligations after fifteen
  4 15 days from the publication of the notice of intention to issue
  4 16 certificates or enter into contracts or other obligations.
  4 17    6.  The board of trustees shall determine if revenues are
  4 18 sufficient to secure the faithful performance of obligations.
  4 19    Sec. 4.  Section 357H.9, Code Supplement 1997, is amended
  4 20 to read as follows:
  4 22    The board of trustees shall provide by resolution that
  4 23 taxes levied on the taxable property in a rural improvement
  4 24 zone each year by or for the benefit of the state, city,
  4 25 county, school district, or other taxing district after the
  4 26 effective date of the resolution shall be divided as provided
  4 27 in section 403.19, subsections 1 and 2, in the same manner as
  4 28 if the taxable property in the rural improvement zone was
  4 29 taxable property in an urban renewal area and the resolution
  4 30 was an ordinance within the meaning of those subsections.  The
  4 31 taxes received by the board of trustees shall be allocated to,
  4 32 and when collected be paid into, a special fund and may be
  4 33 irrevocably pledged by the trustees to pay the principal of
  4 34 and interest on the certificates issued, contracts, or other
  4 35 obligations approved by the board of trustees to finance or
  5  1 refinance, in whole or in part, an improvement project.  As
  5  2 used in this section, "taxes" includes, but is not limited to,
  5  3 all levies on an ad valorem basis upon land or real property
  5  4 located in the rural improvement zone.  
  5  5                           EXPLANATION 
  5  6    The bill allows all counties with a private lake
  5  7 development to have an area designated a rural improvement
  5  8 zone.  Present law allows only counties with populations of
  5  9 10,500 to 11,500 to do so.  The bill expands the definition of
  5 10 improvement for purposes of rural improvement zones to include
  5 11 dredgings, installation of erosion control measures, land
  5 12 acquisition, and related improvements outside of the
  5 13 boundaries of the zone.  Present law limits such items to
  5 14 items located within the zone.
  5 15    The bill specifies that the original and succeeding
  5 16 trustees of a rural improvement zone shall begin their terms
  5 17 immediately following the election and certification of the
  5 18 outcome.
  5 19    Present law allows for the issuance of certificates to
  5 20 finance improvements.  The bill expands this to allow for
  5 21 entering into contracts and other obligations for purposes of
  5 22 financing improvements.  
  5 23 LSB 3697SC 77
  5 24 mg/jl/8

Text: SSB02109                          Text: SSB02111
Text: SSB02100 - SSB02199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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