Senate File 2500 S-5208 Amend Senate File 2500 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 TOWNSHIP GOVERNANCE 5 Section 1. Section 39.22, unnumbered paragraph 1, Code 6 2026, is amended to read as follows: 7 The This section applies only to the election or appointment 8 of township officers in townships not subject to the provisions 9 of section 359.11, subsection 1. The appointment of township 10 officers in townships subject to the provisions of section 11 359.11, subsection 1, shall occur only as provided in that 12 subsection. Otherwise, the offices of township trustee and 13 township clerk shall be filled by appointment or election as 14 follows: 15 Sec. 2. Section 64.1A, subsection 5, Code 2026, is amended 16 to read as follows: 17 5. Township trustees and, if appointed pursuant to section 18 359.11, subsection 1, township clerks . 19 Sec. 3. Section 69.8, subsection 5, Code 2026, is amended 20 to read as follows: 21 5. Elected township offices. 22 a. When a vacancy occurs in the office of township clerk 23 or township trustee in a township that is not subject to the 24 provisions of section 359.11, subsection 1 , the vacancy shall 25 be filled by appointment by the trustees. All appointments to 26 fill vacancies in township offices shall be until a successor 27 is elected at the next general election and qualifies by taking 28 the oath of office. If the term of office in which the vacancy 29 exists will expire within seventy days after the next general 30 election, the person elected to the office for the succeeding 31 term shall qualify by taking the oath of office within ten days 32 after the election and shall serve for the remainder of the 33 unexpired term, as well as for the next four-year term. 34 b. However, if the offices of two trustees are vacant in 35 -1- SF 2500.4155 (2) 91 js/jh 1/ 9 #1.

a township that is not subject to the provisions of section 1 359.11, subsection 1, the county board of supervisors shall 2 fill the vacancies by appointment. If the offices of three 3 trustees are vacant in a township that is not subject to the 4 provisions of section 359.11, subsection 1, the board may 5 fill the vacancies by appointment, or the board may adopt a 6 resolution stating that the board will exercise all powers and 7 duties assigned by law to the trustees of the township in which 8 the vacancies exist until the vacancies are filled at the next 9 general election. If a township office vacancy is not filled 10 by the trustees within thirty days after the vacancy occurs, 11 the board of supervisors may appoint a successor to fill the 12 vacancy until the vacancy can be filled at the next general 13 election. 14 c. When a vacancy occurs in the office of township trustee 15 or township clerk in a township that is subject to the 16 provisions of section 359.11, subsection 1, the vacancy shall 17 be filled pursuant to that subsection. 18 Sec. 4. Section 331.502, subsection 24, Code 2026, is 19 amended to read as follows: 20 24. Carry out duties related to posting financial 21 information of a township as provided in sections 359.23 and 22 359.49 and 359.51A . 23 Sec. 5. Section 331.512, subsection 1, paragraph i, Code 24 2026, is amended to read as follows: 25 i. The levy of taxes certified by the board of trustees of a 26 township as provided in chapters chapter 359 and 360 . 27 Sec. 6. Section 359.10, Code 2026, is amended to read as 28 follows: 29 359.10 New township —— first election Initial township 30 elections . 31 When a new township is formed and is not subject to the 32 provisions of section 359.11, subsection 1, or when a township 33 ceases to be subject to the provisions of section 359.11, 34 subsection 1 , in which and township officers are to be 35 -2- SF 2500.4155 (2) 91 js/jh 2/ 9

elected, the board of supervisors shall call the first township 1 election, to be held at such place as it may designate, on the 2 day of the next general election. If at any time a new township 3 has been created in a year in which no general election is 4 held, the board may call a special election for the election of 5 the township officers of the new township, who shall continue 6 in office until their successors are elected and qualified. 7 There shall be elected two trustees for a term of two years, 8 whose successors shall serve terms of four years, one trustee 9 for a term of four years, and one clerk for a term of four 10 years. 11 Sec. 7. Section 359.11, Code 2026, is amended by striking 12 the section and inserting in lieu thereof the following: 13 359.11 Appointment of trustees and clerks —— training. 14 1. a. This subsection applies only to townships located in 15 a county with a population of less than seventy-five thousand 16 according to the most recent federal decennial census, except 17 this subsection does not apply to any township with a taxable 18 valuation for property tax purposes of two hundred fifty 19 million dollars or more. 20 b. Prior to January 1, 2027, the board of supervisors shall 21 appoint three registered voters of each township to serve on 22 the board of trustees in each township, whose terms shall begin 23 January 1, 2027. The initial terms of the board of trustees 24 shall be staggered. One appointee under this paragraph shall 25 serve a term of one year, one appointee under this paragraph 26 shall serve a term of two years, and one appointee under this 27 paragraph shall serve a term of three years. This paragraph is 28 repealed January 1, 2031. 29 c. A board of trustees in each township shall consist 30 of three registered voters of the township appointed by the 31 board of supervisors to serve three-year terms staggered so 32 that one term expires on January 1 of each year. Prior to 33 the expiration of the term of an appointee to the board of 34 trustees, the board of supervisors shall appoint a registered 35 -3- SF 2500.4155 (2) 91 js/jh 3/ 9

voter of the township to serve a term of three years beginning 1 January 1. 2 d. The board of supervisors shall appoint a township clerk 3 to serve a term of four years beginning January 1. 4 2. A township that has appointed officers pursuant to 5 subsection 1 that is no longer subject to subsection 1 due to 6 the township being located in a county with a population of 7 at least seventy-five thousand according to the most recent 8 federal decennial census or the taxable valuation of the 9 township for property tax purposes reaching or exceeding two 10 hundred fifty million dollars shall arrange for the election of 11 township officers pursuant to section 359.10. 12 3. The board of supervisors may remove a person appointed 13 under subsection 1 at any time for neglect of duty or 14 maladministration. 15 4. A vacancy on the board of trustees or of the position 16 of township clerk shall be filled for the unexpired portion of 17 the regular term in the same manner as regular appointments are 18 made pursuant to subsection 1 or as provided in section 69.8, 19 if applicable. 20 5. a. Prior to initially taking office as a township 21 trustee or township clerk, the appointee or officer-elect 22 shall attend training on township budgets, duties, and 23 responsibilities, including but not limited to a trustee’s role 24 as a fence viewer under chapter 359A. The training shall be 25 offered by the county agriculture extension council created 26 pursuant to section 176A.5. If multiple county agricultural 27 extension councils exist in the same county, the county 28 agricultural extension councils shall coordinate to offer the 29 required training. County agricultural extension councils may 30 collaborate with the department of management and organizations 31 representing county and city governments in producing the 32 content for and presenting the required training. The county 33 agricultural extension council shall notify the board of 34 supervisors when an appointee or officer-elect has attended the 35 -4- SF 2500.4155 (2) 91 js/jh 4/ 9

required training. 1 b. If an appointee under subsection 1 fails to attend the 2 required training, the board of supervisors shall make a new 3 appointment for the position and the new appointee shall attend 4 the required training prior to taking office. 5 Sec. 8. NEW SECTION . 359.51A Annual reports. 6 Each township clerk shall prepare and submit to the 7 department of management and the county board of supervisors, 8 on or before July 31 of each year, a report in writing, 9 showing all receipts of money and disbursements in the clerk’s 10 office for each separate tax levy authorized by law for the 11 preceding fiscal year, showing the current public debt of the 12 township, showing the balance as of June 30 of all separate 13 reserve accounts held by the township, and providing an 14 itemized statement and any other information the department of 15 management deems relevant, which shall be certified as correct 16 by the trustees of the township. The report shall be in a form 17 prescribed by the department of management in consultation with 18 the county finance committee. Each township clerk shall send a 19 copy of this written report to the department of management, 20 county board of supervisors, and county auditor. The county 21 auditor shall post the report or a summary of the report in 22 a prominent place in the building where the auditor’s office 23 is located. The department of management shall post all 24 reports received pursuant to this section on the department of 25 management’s internet site and a county shall post all reports 26 received pursuant to this section on the county’s internet 27 site. The county treasurer shall withhold disbursement of 28 township taxes until the report is filed with the county board 29 of supervisors and the county auditor. The county auditor 30 shall notify the county treasurer if taxes are to be withheld. 31 Sec. 9. NEW SECTION . 359.61 Intergovernmental agreements. 32 1. Any legal or contractual agreement or obligation to which 33 a township is subject in effect prior to the township becoming 34 subject to the provisions of section 359.11, subsection 1, 35 -5- SF 2500.4155 (2) 91 js/jh 5/ 9

shall remain in effect until the expiration of the legal or 1 contractual agreement or obligation. 2 2. Any agreement entered into under chapter 28E to which a 3 township is a party is invalid and unenforceable on and after 4 January 1, 2027, if the agreement has not been filed with the 5 secretary of state by that date pursuant to section 28E.8. 6 This subsection does not prohibit a township from entering a 7 new agreement under chapter 28E as long as the agreement is 8 filed pursuant to section 28E.8. 9 Sec. 10. NEW SECTION . 384.12A Rural fire protection fund. 10 1. A city that provides fire protection and emergency 11 medical services to a township pursuant to a contract shall 12 establish a rural fire protection fund under the control of the 13 city’s fire department. 14 2. A city that receives payment from a township pursuant 15 to a township’s levy for fire protection or emergency medical 16 services pursuant to section 359.43 shall deposit such payments 17 into the city’s rural fire protection fund. The city shall use 18 moneys in the rural fire protection fund only for purposes of 19 providing fire protection and emergency medical services. 20 3. By June 30, 2026, and by June 30 of each year thereafter, 21 a city that deposits payments from a township into the city’s 22 rural fire protection fund pursuant to subsection 2 shall 23 share with the township board of trustees and, if the township 24 is subject to the provisions of section 359.11, subsection 25 1, with the county board of supervisors an itemized list of 26 expenditures from the fund. 27 4. Moneys remaining in a city’s rural fire protection fund 28 at the close of the city’s fiscal year shall remain available 29 for expenditure for the purposes of fire protection and 30 emergency medical services. 31 Sec. 11. REPEAL. Sections 359.23, 359.38, and 359.39, Code 32 2026, are repealed. 33 Sec. 12. REPEAL. Chapter 360, Code 2026, is repealed. 34 Sec. 13. TRANSITION —— ELECTED TOWNSHIP OFFICIALS. The 35 -6- SF 2500.4155 (2) 91 js/jh 6/ 9 #3.

term of all elected township officials in all townships subject 1 to the provisions of section 359.11, subsection 1, as enacted 2 by this division of this Act, shall terminate on January 1, 3 2027. A person serving as a township trustee or township clerk 4 pursuant to chapter 359, Code 2026, may continue serving in 5 that role until January 1, 2027. 6 Sec. 14. TRANSITION —— TRANSFER OF MONEYS. On or before 7 September 1, 2026, any moneys collected by a township pursuant 8 to taxes levied under chapter 360, Code 2026, and under control 9 of the township clerk shall be transferred by the township 10 clerk to the general fund of a school district or districts pro 11 rata in which the moneys were raised. 12 Sec. 15. EFFECTIVE DATE. This division of this Act, being 13 deemed of immediate importance, takes effect upon enactment. 14 DIVISION II 15 TOWNSHIP BUDGETS 16 Sec. 16. Section 359.49, Code 2026, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 1A. a. Prior to adoption and certification 19 of the budget proposed pursuant to this section, the board of 20 trustees shall provide the proposed budget to the board of 21 supervisors. 22 b. The board of supervisors shall have the option to approve 23 or reject the proposed budget of a township subject to section 24 359.11, subsection 1. The board of supervisors shall approve 25 or reject the proposed budget of a township subject to section 26 359.11, subsection 1, and direct changes to be made in a timely 27 manner so as to not delay the duties of the board of trustees to 28 adopt a budget and certify taxes by the deadlines provided in 29 this section. 30 c. The board of supervisors shall not direct or allocate 31 any moneys collected pursuant to a levy in one township for 32 use in another township. This paragraph does not prohibit 33 cost-sharing agreements entered into between two or more 34 townships. 35 -7- SF 2500.4155 (2) 91 js/jh 7/ 9

d. All approved budgets, whether approved by the board 1 of trustees or by the board of supervisors as required under 2 paragraph “b” , shall be itemized and presented at hearings and 3 meetings for the review or consideration of the county budget 4 or a county levy. 5 Sec. 17. Section 359.49, subsections 4 and 7, Code 2026, are 6 amended to read as follows: 7 4. The board of trustees shall transmit a copy of the 8 proposed budget and a notice of the meeting set as required by 9 subsection 5 to the county auditor for posting. The county 10 auditor shall post the notice and the proposed budget in an 11 area of the courthouse where notices to the public are commonly 12 posted. The county auditor shall also post the notice and 13 proposed budget on the county’s internet site. 14 7. After the meeting on the proposed budget, the board of 15 trustees shall adopt by resolution a budget for at least the 16 next fiscal year, and the clerk shall certify the necessary 17 tax levy for the next fiscal year to the county auditor and 18 the county board of supervisors by April 30. The tax levy 19 certified may be less than but shall not be more than the 20 amount estimated in the proposed budget submitted at the 21 meeting. Two copies each of the detailed budget as adopted 22 and of the certified tax levy must be transmitted to the 23 county auditor by April 30. The county auditor shall post the 24 detailed budget on the county’s internet site. 25 Sec. 18. Section 359.50, subsection 1, Code 2026, is amended 26 to read as follows: 27 1. A township budget as finally adopted for the following 28 fiscal year becomes effective July 1. A township budget for 29 the current fiscal year may be amended , with the approval of 30 the board of supervisors if approval is required under section 31 359.49, subsection 1A, paragraph “b” , for any of the following 32 purposes: 33 a. To permit the expenditure of unexpended, unencumbered 34 cash balances on hand at the end of the preceding fiscal year 35 -8- SF 2500.4155 (2) 91 js/jh 8/ 9

which that had not been anticipated in the budget. 1 b. To permit the expenditure of amounts anticipated to be 2 available from sources other than property taxation, and which 3 that had not been anticipated in the budget. 4 Sec. 19. EFFECTIVE DATE. This division of this Act takes 5 effect January 1, 2027. > 6 2. Title page, by striking lines 1 through 3 and inserting 7 < An Act relating to townships, including the appointment 8 and duties of township officers, township budgets, and the 9 provision of fire protection and emergency medical services to 10 townships by cities, and including effective date provisions. > 11 ______________________________ DAWN DRISCOLL -9- SF 2500.4155 (2) 91 js/jh 9/ 9 #2.