House File 2422

                                       HOUSE FILE       
                                       BY  COHOON


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act allowing for recertification of city and county budgets
  2    and providing an effective and applicability date.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5989HH 80
  5 sc/gg/14

PAG LIN

  1  1    Section 1.  Section 331.434, Code 2003, is amended by
  1  2 adding the following new subsection:
  1  3    NEW SUBSECTION.  5A.  If, after the budget has been
  1  4 certified, but before June 20 following certification of the
  1  5 budget, the general assembly passes and the governor signs a
  1  6 bill reducing an appropriation to local governments and such
  1  7 reduction would cause revenue listed in a county budget to be
  1  8 less than that certified, the county may recertify its budget
  1  9 and the needed taxes, notwithstanding subsection 5, to reflect
  1 10 the reduction in revenue to be received.  A budget and taxes
  1 11 recertified pursuant to this subsection shall be recertified
  1 12 by June 30.
  1 13    Sec. 2.  Section 331.434, subsection 7, Code 2003, is
  1 14 amended to read as follows:
  1 15    7.  Taxes Except as otherwise provided in subsection 5A,
  1 16 taxes levied by a county whose budget is certified after March
  1 17 15 shall be limited to the prior year's budget amount.
  1 18 However, this penalty may be waived by the director of the
  1 19 department of management if the county demonstrates that the
  1 20 March 15 deadline was missed because of circumstances beyond
  1 21 the control of the county.
  1 22    Sec. 3.  Section 384.16, Code 2003, is amended by adding
  1 23 the following new subsection:
  1 24    NEW SUBSECTION.  5A.  If, after the budget has been
  1 25 certified, but before June 20 following certification of the
  1 26 budget, the general assembly passes and the governor signs a
  1 27 bill reducing an appropriation to local governments and such
  1 28 reduction would cause revenue listed in a city budget to be
  1 29 less than that certified, the city may recertify its budget
  1 30 and the needed levy of taxes, notwithstanding subsection 5, to
  1 31 reflect the reduction in revenue to be received.  A budget and
  1 32 levy of taxes recertified pursuant to this subsection shall be
  1 33 recertified by June 30.
  1 34    Sec. 4.  Section 384.16, subsection 6, Code 2003, is
  1 35 amended to read as follows:
  2  1    6.  Taxes Except as otherwise provided in subsection 5A,
  2  2 taxes levied by a city whose budget is certified after March
  2  3 15 shall be limited to the prior year's budget amount.
  2  4 However, this penalty may be waived by the director of the
  2  5 department of management if the city demonstrates that the
  2  6 March 15 deadline was missed because of circumstances beyond
  2  7 the control of the city.
  2  8    Sec. 5.  EFFECTIVE AND APPLICABILITY DATE.  This Act, being
  2  9 deemed of immediate importance, takes effect upon enactment
  2 10 and applies to fiscal years beginning on or after July 1,
  2 11 2004.
  2 12                           EXPLANATION
  2 13    This bill allows a city or county that has certified its
  2 14 budget to recertify the budget if, before June 20, the general
  2 15 assembly enacts a bill reducing an appropriation to local
  2 16 governments that causes the revenue to be received under the
  2 17 certified budget to be less than the amount certified.  The
  2 18 bill provides that the budget must be recertified by June 30.
  2 19    The bill takes effect upon enactment and applies to fiscal
  2 20 years beginning on or after July 1, 2004.
  2 21 LSB 5989HH 80
  2 22 sc/gg/14