Text: SSB01067 Text: SSB01069 Text: SSB01000 - SSB01099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 25B.2, subsection 3, Code 2001, is 1 2 amended by striking the subsection. 1 3 Sec. 2. NEW SECTION. 25B.5A UNFUNDED STATE MANDATES 1 4 EFFECT. 1 5 If, on or after July 1, 2001, a state mandate is enacted by 1 6 the general assembly, or otherwise imposed, on a political 1 7 subdivision and the state mandate requires a political 1 8 subdivision to engage in any new activity, to provide a new 1 9 service, or to provide any service beyond that required by any 1 10 law enacted prior to July 1, 2001, and the state does not 1 11 appropriate moneys to fully fund the cost of the state mandate 1 12 as identified pursuant to section 25B.5, subsections 1 and 2, 1 13 the political subdivision is not required to perform the 1 14 activity or provide the service and the political subdivision 1 15 shall not be subject to any liabilities imposed by the state 1 16 or the imposition of any fines or penalties for the failure to 1 17 comply with the state mandate. 1 18 Sec. 3. NEW SECTION. 28L.1 IOWA COMMISSION ON STATE AND 1 19 LOCAL TAXATION. 1 20 1. An Iowa commission on state and local taxation is 1 21 created which shall consist of fifteen members appointed as 1 22 follows: 1 23 a. Four members appointed by the governor, at least one of 1 24 whom shall be a private citizen and at least one of whom shall 1 25 be a representative of business and industry. 1 26 b. Three senators appointed by the majority leader of the 1 27 senate, one of whom shall be nominated by the minority leader 1 28 of the senate. 1 29 c. Three representatives appointed by the speaker of the 1 30 house, one of whom shall be nominated by the minority leader 1 31 of the house. 1 32 d. One member appointed by the Iowa state association of 1 33 counties. 1 34 e. One member appointed by the Iowa league of cities. 1 35 f. One member appointed by the Iowa association of school 2 1 boards. 2 2 g. One member appointed by the presidents of the regents 2 3 universities. 2 4 h. One member appointed by the Iowa association of 2 5 community college trustees. 2 6 2. Members appointed by the governor are subject to senate 2 7 confirmation. In making all appointments, consideration shall 2 8 be given to gender, race, or ethnic representation, population 2 9 and demographic factors, and representation of different 2 10 geographic regions. Appointments made under subsection 1, 2 11 paragraphs "d" through "h", are not subject to section 69.16 2 12 or 69.16A. 2 13 3. Members of the commission shall hold office for four 2 14 years beginning June 1 of the year of appointment and until 2 15 their successors are appointed, except that three initial 2 16 appointees shall be appointed for one year, three initial 2 17 appointees for two years, four initial appointees for three 2 18 years, and five initial appointees for four years. The 2 19 commission shall conduct its organizational meeting no later 2 20 than September 1, 2001. 2 21 4. Legislative members of the commission are eligible for 2 22 per diem and expenses as provided in section 2.10. Members of 2 23 the commission appointed by the governor shall be reimbursed 2 24 for actual and necessary expenses incurred in performance of 2 25 their duties. Members may also be eligible to receive 2 26 compensation as provided in section 7E.6. 2 27 5. A majority of the commission members shall constitute a 2 28 quorum. For the purpose of conducting business, a majority 2 29 vote of the commission shall be required. Beginning in May 2 30 2002, the commission shall meet in May of each year for the 2 31 purpose of electing one of its members as chairperson. The 2 32 commission shall meet quarterly and at other times as 2 33 necessary at the call of the chairperson or when any six 2 34 members of the commission file a written request with the 2 35 chairperson for a meeting. Written notice of the time and 3 1 place of each meeting shall be given to each member of the 3 2 commission. 3 3 6. The commission may establish committees as it deems 3 4 advisable and feasible, whose membership shall include at 3 5 least two members of the commission, but only the commission 3 6 may take final action on a proposal or recommendation of a 3 7 committee. 3 8 7. Any vacancy shall be filled in the same manner as 3 9 regular appointments are made for the unexpired portion of the 3 10 regular term. A member of the commission may be removed for 3 11 any of the causes and in the manner provided in chapter 66. 3 12 Sec. 4. NEW SECTION. 28L.2 STAFF AND FACILITIES. 3 13 The commission and committees established by the commission 3 14 may accept technical and operational assistance from the staff 3 15 of the legislative service bureau and the legislative fiscal 3 16 bureau, other state or federal agencies, units of local 3 17 governments, or any other public or private source. The 3 18 directors of the legislative service bureau and the 3 19 legislative fiscal bureau may assign professional, technical, 3 20 legal, clerical, or other staff, as necessary and authorized 3 21 by the legislative council for continued operation of the 3 22 commission. However, technical and operational assistance 3 23 provided by the bureaus shall be provided within existing 3 24 appropriations made to or with existing resources of the 3 25 legislative service bureau and legislative fiscal bureau. The 3 26 legislative council may also provide to the commission 3 27 available facilities and equipment as requested by the 3 28 commission. 3 29 Sec. 5. NEW SECTION. 28L.3 REVIEW OF STATE AND LOCAL 3 30 REVENUE AND SERVICES. 3 31 1. The commission shall conduct a review of the following: 3 32 a. Revenue sources available to local governments, 3 33 including taxes, fees, state appropriations, and federal 3 34 moneys. 3 35 b. Revenue sources available to the state, including 4 1 taxes, fees, and federal moneys, and the portion of state 4 2 revenues annually appropriated, or otherwise disbursed, to 4 3 local governments. 4 4 c. Services provided by local governments, including those 4 5 provided at the discretion of a local government and those 4 6 mandated by federal or state statutes and regulations. 4 7 2. In conducting its review of revenue sources, the 4 8 commission shall study state and local taxes from the 4 9 standpoint of equity, neutrality, competitiveness, simplicity, 4 10 and stability. 4 11 3. The commission shall hold public hearings to allow 4 12 persons and organizations to be heard. 4 13 4. The commission shall submit a report to the general 4 14 assembly on the status of the review no later than March 15, 4 15 2002. The status report shall summarize the commission's 4 16 activities to date and may include such other information that 4 17 the commission deems relevant and necessary. 4 18 5. a. The commission shall submit a final report to the 4 19 general assembly no later than January 15, 2003. 4 20 b. The final report shall include the following: 4 21 (1) A statement of goals that the commission believes are 4 22 necessary to achieve principles of taxation agreed upon by the 4 23 committee. 4 24 (2) Any strategies formulated by the commission that 4 25 consist of recommended methods of state and local taxation, 4 26 specific structural changes, and any modifications to the 4 27 current system of state and local taxation. 4 28 (3) Such other information that the commission deems 4 29 relevant and necessary. 4 30 6. This section shall not be construed to preclude the 4 31 enactment of legislation that eliminates or reduces any state 4 32 or local government tax during the period the Iowa commission 4 33 on state and local taxation is conducting the review required 4 34 by this section. 4 35 Sec. 6. NEW SECTION. 28L.4 DUTIES OF THE COMMISSION. 5 1 The commission shall: 5 2 1. Conduct the review as required in section 28L.3. 5 3 2. Monitor legislative or administrative action on 5 4 recommendations in the report required in section 28L.3. 5 5 3. Annually report on the state of local governments in 5 6 Iowa. 5 7 4. Annually report on state and federal issues relating to 5 8 local government that have a potential fiscal impact on local 5 9 governments. 5 10 5. Annually report on court decisions having an impact on 5 11 state and local government revenue or services. 5 12 6. The reports in subsections 3, 4, and 5 shall be filed 5 13 with the governor, president of the senate, speaker of the 5 14 house, and the majority and minority leaders of each house, 5 15 and shall be made available to legislators and the public upon 5 16 request. The reports must be submitted no later than January 5 17 15 of each year. 5 18 Sec. 7. NEW SECTION. 28L.5 INFORMATION. 5 19 The commission may request from any state agency or 5 20 official the information and assistance as needed to perform 5 21 the duties of the commission. A state agency or official 5 22 shall furnish the information or assistance requested within 5 23 the authority and resources of the state agency or official. 5 24 This section does not require the production or opening of any 5 25 public record which is required by law to be kept 5 26 confidential. 5 27 Sec. 8. NEW SECTION. 28L.6 FUTURE REPEAL. 5 28 This chapter is repealed effective July 1, 2006. 5 29 Sec. 9. NEW SECTION. 331.404 COUNTY FINANCIAL MANAGEMENT 5 30 PLAN. 5 31 Each county shall prepare a financial management plan for 5 32 the county for use in budget planning. The financial 5 33 management plan shall contain a set of financial policies for 5 34 use by counties in budget planning. The county financial 5 35 management plan shall be prepared in a manner which will 6 1 assist counties in identifying budgeting goals, fiscal and 6 2 service planning strategies, and revenue targets. County 6 3 financial management planning shall be completed on forms 6 4 prepared by the department of management and approved by the 6 5 county finance committee in consultation with the Iowa state 6 6 association of county supervisors, the Iowa state association 6 7 of county auditors, and the public. 6 8 Copies of the financial management plan for a county shall 6 9 be maintained as a public record at the county auditor's 6 10 office and shall be filed with the state appeal board in the 6 11 same manner and at the same time that certified budgets are 6 12 filed under section 24.17. 6 13 Sec. 10. NEW SECTION. 331.423A ENDING FUND BALANCE. 6 14 Effective for a fiscal year beginning on or after July 1, 6 15 2007, budgeted ending fund balances shall not exceed twenty- 6 16 five percent of actual expenditures in the previous fiscal 6 17 year for either the general fund or the rural services fund. 6 18 An ending fund balance does not include funds reserved or 6 19 designated for a specific purpose and specifically described 6 20 in the certified budget. 6 21 Sec. 11. Section 331.441, subsection 2, Code 2001, is 6 22 amended by adding the following new paragraph: 6 23 NEW PARAGRAPH. d. "Rural general obligation bond" means a 6 24 negotiable bond issued by a county and payable from the levy 6 25 of ad valorem taxes on all taxable property located outside 6 26 the incorporated areas of the county through its debt service 6 27 fund which is required to be established by section 331.430. 6 28 Sec. 12. NEW SECTION. 331.450 RURAL DEBT SERVICE. 6 29 The county board of supervisors may direct the county 6 30 auditor to establish a rural debt service tax district for the 6 31 purpose of issuing general obligation bonds for rural county 6 32 services. The rural debt service tax district shall include 6 33 only unincorporated portions of the county. The county's debt 6 34 service tax levy for the rural general obligation bonds shall 6 35 be levied only against taxable property within the county 7 1 which is included within the boundaries of the rural debt 7 2 service tax district. The board may issue rural general 7 3 obligation bonds for general county purposes and essential 7 4 county purposes if such stated purpose is primarily intended 7 5 to benefit those persons residing in the county outside of 7 6 incorporated city areas. Rural general obligation bonds for 7 7 the purposes described in this section are subject to an 7 8 election held in the manner provided in section 331.442, 7 9 subsections 1 through 4, except that only those registered 7 10 voters residing within the rural service area tax district may 7 11 vote on the proposition. 7 12 Sec. 13. NEW SECTION. 331.451 LOANS TO CITIES. 7 13 A county may enter into a 28E agreement with one or more 7 14 cities to finance in whole or in part one or more projects 7 15 meeting the definition of a city essential corporate purpose 7 16 or city general corporate purpose. The agreement may provide 7 17 for issuance of general obligation bonds by the county the 7 18 proceeds from which will be loaned to the city to finance such 7 19 a city project. The county may require that the repayment 7 20 obligation of a city be secured as the county deems 7 21 appropriate. The repayment obligation may be evidenced by one 7 22 or more notes of a borrowing city. The loan agreements may 7 23 contain terms and conditions the county deems advisable. 7 24 The county may provide in the resolution authorizing the 7 25 issuance of bonds that the principal and interest on the bonds 7 26 are payable exclusively from any of the following: 7 27 1. The income and receipts or other money derived from the 7 28 project financed with the proceeds of the bonds. 7 29 2. The income and receipts or other money derived from 7 30 designated projects whether or not the projects are financed 7 31 in whole or in part with the proceeds of the bonds or notes. 7 32 3. A debt service property tax levy imposed by the city on 7 33 the taxable property in the city. 7 34 4. Tax incremental revenues if the project is located in 7 35 an urban renewal area. The county may require that a city 8 1 create an urban renewal area to collect incremental tax 8 2 revenues to secure the loan. 8 3 Bonds proposed to be issued under this section are subject 8 4 to an election held in the manner provided in section 331.442, 8 5 subsections 1 through 4. 8 6 EXPLANATION 8 7 This bill makes a number of changes relating to local 8 8 government fiscal reform and creates a commission to review 8 9 state and local taxes. 8 10 The bill provides that if a new state mandate is imposed on 8 11 or after July 1, 2001, which requires the performance of a new 8 12 activity or service or the expansion of a service beyond what 8 13 was required before July 1, 2001, the state mandate must be 8 14 fully funded. If the state mandate is not fully funded, the 8 15 affected political subdivisions are not required to comply or 8 16 implement the state mandate. Also, no fines or penalties may 8 17 be imposed on a political subdivision for failure to comply or 8 18 carry out an unfunded state mandate. 8 19 The bill strikes Code section 25B.2, subsection 3, and 8 20 rewrites it as a new section outside the intent section of 8 21 Code chapter 25B. The rewritten section removes a qualifying 8 22 phrase which limits the circumstances under which a political 8 23 subdivision may fail to carry out an unfunded state mandate. 8 24 The bill creates a commission on state and local taxation. 8 25 The 15 members of the commission are appointed by the governor 8 26 (four members), senate majority leader (three members), 8 27 speaker of the house of representatives (three members), and 8 28 various associations representing local governments (one 8 29 member each). 8 30 The bill requires the commission to hold its organizational 8 31 meeting no later than September 1, 2001. The commission is to 8 32 be staffed by the legislative service bureau and the 8 33 legislative fiscal bureau. 8 34 The bill requires the commission to conduct a review of 8 35 state and local taxation in Iowa. The commission is to submit 9 1 a status report on the review of state and local taxation and 9 2 the commission's other activities by March 15, 2002. A final 9 3 report is to be submitted to the general assembly by January 9 4 15, 2003. The commission is to also report annually on the 9 5 state of local governments in Iowa, state and federal issues 9 6 that have a potential fiscal impact on local governments, and 9 7 court decisions having an impact on state and local government 9 8 revenue and services. All annual reports of the commission 9 9 are to be filed with the governor, the president of the 9 10 senate, speaker of the house, and the majority and minority 9 11 leaders of each house. The reports shall also be made 9 12 available to other legislators and the public upon request. 9 13 The commission is repealed July 1, 2006. 9 14 The bill requires counties to annually prepare a financial 9 15 management plan to be filed with the state at the same time 9 16 that the certified budget is filed. The purpose of the plan 9 17 is to set forth a set of financial policies for use by 9 18 counties in budget planning. 9 19 The bill limits the ending general fund and rural services 9 20 fund balances of a county to 25 percent of actual expenditures 9 21 from each fund in the previous fiscal year. The limitation 9 22 applies to fiscal years beginning on or after July 1, 2007. 9 23 The bill allows a county to issue rural general obligation 9 24 bonds payable from property taxes levied in the unincorporated 9 25 areas of the county. The bonds are subject to the election 9 26 requirements for countywide general obligation bonds. 9 27 The bill also allows a county to issue general obligation 9 28 bonds and loan the proceeds of the bonds to one or more cities 9 29 to finance a city project. The bonds are subject to the 9 30 election requirements for countywide general obligation bonds. 9 31 LSB 1235XC 79 9 32 sc/cls/14
Text: SSB01067 Text: SSB01069 Text: SSB01000 - SSB01099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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