Senate Study Bill 3021 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON DANIELSON) A BILL FOR An Act relating to the use of the rural county services 1 property tax levy for services and functions undertaken 2 jointly by a county with certain cities and including 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5419XC (3) 86 md/sc

S.F. _____ Section 1. Section 28E.22, subsection 4, Code 2016, is 1 amended to read as follows: 2 4. Such moneys collected pursuant to the tax levy shall 3 be expended only for providing additional moneys needed for 4 unified law enforcement services in the district and shall be 5 in addition to the revenues raised in the county and cities in 6 the district from their general funds which are based upon an 7 average of revenues raised for law enforcement purposes by the 8 county or city for the three previous years. The amount of 9 revenues raised for law enforcement purposes by the county for 10 the three previous years shall be computed separately for the 11 unincorporated portion of the district and for each city in the 12 district. 13 Sec. 2. Section 28E.23, subsection 1, Code 2016, is amended 14 to read as follows: 15 1. The public safety commission, on or before January 10 16 of each year, shall make an estimate of the total amount of 17 revenue deemed necessary for operation of the district and, 18 in conjunction with the county board of supervisors and city 19 councils in the district, determine the amounts which will be 20 contributed by the county and by each city in the district 21 from its general fund which are based upon an average of 22 revenues raised for law enforcement purposes in the county 23 or city for the three previous years. As an alternative to 24 computing average revenues raised for law enforcement purposes 25 for the three previous years, a public safety commission, in 26 conjunction with the county board of supervisors and city 27 councils in the district, may calculate the average by using 28 the amounts budgeted for the three previous fiscal years. 29 The average of the amounts budgeted for the three previous 30 fiscal years may be adjusted by a percentage not to exceed the 31 percentage increase in the consumer price index for all urban 32 consumers for the last available twelve-month period published 33 in the federal register by the federal department of labor, 34 bureau of labor statistics. 35 -1- LSB 5419XC (3) 86 md/sc 1/ 4

S.F. _____ Sec. 3. Section 28E.24, subsection 1, paragraph a, Code 1 2016, is amended to read as follows: 2 a. The county board of supervisors shall certify to the 3 public safety commission the amount of county revenue from the 4 county general fund credited to the unincorporated area in 5 the district based upon an average of revenues raised for law 6 enforcement purposes in the unincorporated area for the three 7 previous years. The public safety commission shall subtract 8 this amount from the amount of revenue to be contributed by 9 the unincorporated area. The difference is the amount of 10 additional revenue needed for unified law enforcement purposes. 11 Sec. 4. Section 28J.13, Code 2016, is amended to read as 12 follows: 13 28J.13 Annual budget —— use of rents and charges. 14 The board shall annually prepare a budget for the port 15 authority. Revenues received by the port authority shall be 16 used for the general expenses of the port authority and to 17 pay interest, amortization, and retirement charges on money 18 borrowed. Except as provided in section 28J.26 , if there 19 remains, at the end of any fiscal year, a surplus of such funds 20 after providing for the above uses, the board shall pay such 21 surplus into the general funds of the political subdivisions 22 comprising the port authority as agreed to by the subdivisions. 23 Sec. 5. Section 29C.17, subsection 2, paragraph b, Code 24 2016, is amended to read as follows: 25 b. Per capita allocation funded from city general funds and 26 county general rural services funds or by a combination of city 27 and county special levies which may be apportioned among the 28 member jurisdictions. 29 Sec. 6. Section 331.421, subsection 8, Code 2016, is amended 30 to read as follows: 31 8. “Rural county services” means the services which are 32 primarily intended to benefit those persons residing in 33 the county outside of incorporated city areas, including 34 secondary road services, but excluding services financed by 35 -2- LSB 5419XC (3) 86 md/sc 2/ 4

S.F. _____ other statutory funds. “Rural county services” also means 1 any service provided by the county jointly by agreement with 2 one or more cities located in the county and under which the 3 county contributes revenue for provision of the service to the 4 unincorporated area of the county, including but not limited to 5 a service provided pursuant to an agreement under chapter 28E, 6 28F, 28G, 28J, 28M, or 29C. 7 Sec. 7. Section 331.427, subsection 3, paragraph a, Code 8 2016, is amended by striking the paragraph. 9 Sec. 8. APPLICABILITY. This Act applies to fiscal years 10 beginning on or after July 1, 2017. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill relates to the definition of rural county services 15 and the use of rural county services property tax revenue for 16 services and functions undertaken jointly by a county with one 17 or more cities. 18 Current Code section 331.421 defines “rural county services” 19 to mean the services which are primarily intended to benefit 20 those persons residing in the county outside of incorporated 21 city areas, including secondary road services, but excluding 22 services financed by other statutory funds. Property taxes for 23 rural county services are levied on all taxable property in the 24 unincorporated areas of the county, instead of being levied on 25 all taxable property within the county. 26 The bill amends the definition of “rural county services” 27 to also mean any service provided by the county jointly by 28 agreement with one or more cities located in the county for 29 which the county contributes revenue for provision of the 30 service to the unincorporated area of the county. Accordingly, 31 the revenues to be paid by a county under such an agreement for 32 the joint service must be paid from the rural services fund. 33 The bill makes conforming changes to provisions relating 34 to the joint provision of services by local governments under 35 -3- LSB 5419XC (3) 86 md/sc 3/ 4