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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
© 2001 Cornell College and League of Women Voters of Iowa
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