Senate File 129
SENATE FILE
BY HOUSER
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act establishing a commission on state and local taxation.
2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
3 TLSB 2135SS 80
4 sc/cl/14
PAG LIN
1 1 Section 1. NEW SECTION. 28M.1 IOWA COMMISSION ON STATE
1 2 AND LOCAL TAXATION.
1 3 1. An Iowa commission on state and local taxation is
1 4 created which shall consist of fifteen members appointed as
1 5 follows:
1 6 a. Four members appointed by the governor, at least one of
1 7 whom shall be a private citizen and at least one of whom shall
1 8 be a representative of business and industry.
1 9 b. Three senators appointed by the majority leader of the
1 10 senate, one of whom shall be nominated by the minority leader
1 11 of the senate.
1 12 c. Three representatives appointed by the speaker of the
1 13 house, one of whom shall be nominated by the minority leader
1 14 of the house.
1 15 d. One member appointed by the Iowa state association of
1 16 counties.
1 17 e. One member appointed by the Iowa league of cities.
1 18 f. One member appointed by the Iowa association of school
1 19 boards.
1 20 g. One member appointed by the presidents of the regents
1 21 universities.
1 22 h. One member appointed by the Iowa association of
1 23 community college trustees.
1 24 2. Members appointed by the governor are subject to senate
1 25 confirmation. In making all appointments, consideration shall
1 26 be given to gender, race, or ethnic representation, population
1 27 and demographic factors, and representation of different
1 28 geographic regions. Appointments made under subsection 1,
1 29 paragraphs "d" through "h", are not subject to section 69.16
1 30 or 69.16A.
1 31 3. Members of the commission shall hold office for four
1 32 years beginning June 1 of the year of appointment and until
1 33 their successors are appointed, except that three initial
1 34 appointees shall be appointed for one year, three initial
1 35 appointees for two years, four initial appointees for three
2 1 years, and five initial appointees for four years. The
2 2 commission shall conduct its organizational meeting no later
2 3 than September 1, 2003.
2 4 4. Legislative members of the commission are eligible for
2 5 per diem and expenses as provided in section 2.10. Members of
2 6 the commission appointed by the governor shall be reimbursed
2 7 for actual and necessary expenses incurred in performance of
2 8 their duties. Members may also be eligible to receive
2 9 compensation as provided in section 7E.6.
2 10 5. A majority of the commission members shall constitute a
2 11 quorum. For the purpose of conducting business, a majority
2 12 vote of the commission shall be required. Beginning in May
2 13 2004, the commission shall meet in May of each year for the
2 14 purpose of electing one of its members as chairperson. The
2 15 commission shall meet quarterly and at other times as
2 16 necessary at the call of the chairperson or when any six
2 17 members of the commission file a written request with the
2 18 chairperson for a meeting. Written notice of the time and
2 19 place of each meeting shall be given to each member of the
2 20 commission.
2 21 6. The commission may establish committees as it deems
2 22 advisable and feasible, whose membership shall include at
2 23 least two members of the commission, but only the commission
2 24 may take final action on a proposal or recommendation of a
2 25 committee.
2 26 7. Any vacancy shall be filled in the same manner as
2 27 regular appointments are made for the unexpired portion of the
2 28 regular term. A member of the commission may be removed for
2 29 any of the causes and in the manner provided in chapter 66.
2 30 Sec. 2. NEW SECTION. 28M.2 STAFF AND FACILITIES.
2 31 The commission and committees established by the commission
2 32 may accept technical and operational assistance from the staff
2 33 of the legislative service bureau and the legislative fiscal
2 34 bureau, other state or federal agencies, units of local
2 35 governments, or any other public or private source. The
3 1 directors of the legislative service bureau and the
3 2 legislative fiscal bureau may assign professional, technical,
3 3 legal, clerical, or other staff, as necessary and authorized
3 4 by the legislative council for continued operation of the
3 5 commission. However, technical and operational assistance
3 6 provided by the bureaus shall be provided within existing
3 7 appropriations made to or with existing resources of the
3 8 legislative service bureau and legislative fiscal bureau. The
3 9 legislative council may also provide to the commission
3 10 available facilities and equipment as requested by the
3 11 commission.
3 12 Sec. 3. NEW SECTION. 28M.3 REVIEW OF STATE AND LOCAL
3 13 REVENUE AND SERVICES.
3 14 1. The commission shall conduct a review of the following:
3 15 a. Revenue sources available to local governments,
3 16 including taxes, fees, state appropriations, and federal
3 17 moneys.
3 18 b. Revenue sources available to the state, including
3 19 taxes, fees, and federal moneys, and the portion of state
3 20 revenues annually appropriated, or otherwise disbursed, to
3 21 local governments.
3 22 c. Services provided by local governments, including those
3 23 provided at the discretion of a local government and those
3 24 mandated by federal or state statutes and regulations.
3 25 2. In conducting its review of revenue sources, the
3 26 commission shall study state and local taxes from the
3 27 standpoint of equity, neutrality, competitiveness, simplicity,
3 28 and stability.
3 29 3. The commission shall hold public hearings to allow
3 30 persons and organizations to be heard.
3 31 4. The commission shall submit a report to the general
3 32 assembly on the status of the review no later than March 15,
3 33 2004. The status report shall summarize the commission's
3 34 activities to date and may include such other information that
3 35 the commission deems relevant and necessary.
4 1 5. a. The commission shall submit a final report to the
4 2 general assembly no later than January 15, 2005.
4 3 b. The final report shall include the following:
4 4 (1) A statement of goals that the commission believes are
4 5 necessary to achieve principles of taxation agreed upon by the
4 6 committee.
4 7 (2) Any strategies formulated by the commission that
4 8 consist of recommended methods of state and local taxation,
4 9 specific structural changes, and any modifications to the
4 10 current system of state and local taxation.
4 11 (3) Such other information that the commission deems
4 12 relevant and necessary.
4 13 6. This section shall not be construed to preclude the
4 14 enactment of legislation that eliminates or reduces any state
4 15 or local government tax during the period the Iowa commission
4 16 on state and local taxation is conducting the review required
4 17 by this section.
4 18 Sec. 4. NEW SECTION. 28M.4 DUTIES OF THE COMMISSION.
4 19 The commission shall:
4 20 1. Conduct the review as required in section 28M.3.
4 21 2. Monitor legislative or administrative action on
4 22 recommendations in the report required in section 28M.3.
4 23 3. Annually report on the state of local governments in
4 24 Iowa.
4 25 4. Annually report on state and federal issues relating to
4 26 local government that have a potential fiscal impact on local
4 27 governments.
4 28 5. Annually report on court decisions having an impact on
4 29 state and local government revenue or services.
4 30 6. The reports in subsections 3, 4, and 5 shall be filed
4 31 with the governor, president of the senate, speaker of the
4 32 house, and the majority and minority leaders of each house,
4 33 and shall be made available to legislators and the public upon
4 34 request. The reports must be submitted no later than January
4 35 15 of each year.
5 1 Sec. 5. NEW SECTION. 28M.5 INFORMATION.
5 2 The commission may request from any state agency or
5 3 official the information and assistance as needed to perform
5 4 the duties of the commission. A state agency or official
5 5 shall furnish the information or assistance requested within
5 6 the authority and resources of the state agency or official.
5 7 This section does not require the production or opening of any
5 8 public record which is required by law to be kept
5 9 confidential.
5 10 Sec. 6. NEW SECTION. 28M.6 FUTURE REPEAL.
5 11 This chapter is repealed effective July 1, 2008.
5 12 EXPLANATION
5 13 This bill creates a commission on state and local taxation.
5 14 The 15 members of the commission are appointed by the governor
5 15 (four members), senate majority leader (three members),
5 16 speaker of the house of representatives (three members), and
5 17 various associations representing local governments (one
5 18 member each).
5 19 The bill requires the commission to hold its organizational
5 20 meeting no later than September 1, 2003. The commission is to
5 21 be staffed by the legislative service bureau and the
5 22 legislative fiscal bureau.
5 23 The bill requires the commission to conduct a review of
5 24 state and local taxation in Iowa. The commission is to submit
5 25 a status report on the review of state and local taxation and
5 26 the commission's other activities by March 15, 2004. A final
5 27 report is to be submitted to the general assembly by January
5 28 15, 2005. The commission is to also report annually on the
5 29 state of local governments in Iowa, state and federal issues
5 30 that have a potential fiscal impact on local governments, and
5 31 court decisions having an impact on state and local government
5 32 revenue and services. All annual reports of the commission
5 33 are to be filed with the governor, the president of the
5 34 senate, speaker of the house, and the majority and minority
5 35 leaders of each house. The reports shall also be made
6 1 available to other legislators and the public upon request.
6 2 The commission is repealed July 1, 2008.
6 3 LSB 2135SS 80
6 4 sc/cl/14