House File 21 - Introduced
HOUSE FILE
BY WISE and PETERSEN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to joint exercise of governmental powers and
2 related county enterprise authority.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 1080HH 81
5 sc/sh/8
PAG LIN
1 1 Section 1. Section 28E.35, Code 2005, is amended to read
1 2 as follows:
1 3 28E.35 DEFINITIONS.
1 4 As used in this division unless the context otherwise
1 5 requires:
1 6 1. "Community cluster" means a cooperative community unit
1 7 established pursuant to this chapter for the joint exercise of
1 8 powers by two or more governmental units and for sharing one
1 9 or more governmental functions between two or more
1 10 governmental units participating in a community cluster.
1 11 2. "Governing board" means the governing board of a
1 12 community cluster appointed pursuant to section 28E.37.
1 13 2. 3. "Governmental unit" means a city, county, township,
1 14 school district, merged area as defined in section 260C.2, or
1 15 special taxing district.
1 16 4. "Shared governmental function" includes, but is not
1 17 limited to, joint delivery of services, joint operation of
1 18 facilities, joint development of infrastructure, or joint
1 19 fostering of economic development.
1 20 Sec. 2. Section 28E.36, Code 2005, is amended to read as
1 21 follows:
1 22 28E.36 ESTABLISHMENT OF COMMUNITY CLUSTER.
1 23 Two or more governmental units located in the state may, by
1 24 resolution of each governmental unit, establish a community
1 25 cluster by entering into an agreement for the joint exercise
1 26 of powers pursuant to this chapter to make more efficient use
1 27 of their resources by providing for joint functions, services,
1 28 facilities, development of infrastructure and for revenue
1 29 sharing, and to foster economic development shared
1 30 governmental functions between two or more of the governmental
1 31 units participating in the community cluster.
1 32 A community cluster and its governing board shall have all
1 33 the rights, powers, duties, privileges, and immunities of a
1 34 governmental unit and governmental unit governing body to the
1 35 extent that such rights, powers, duties, privileges, and
2 1 immunities relate to shared governmental functions of the
2 2 governmental units participating in the community cluster.
2 3 The governing board of a community cluster shall not levy a
2 4 tax unless specifically authorized by the governing body of
2 5 each participating governmental unit.
2 6 Sec. 3. Section 28E.37, Code 2005, is amended by striking
2 7 the section and inserting in lieu thereof the following:
2 8 28E.37 COMMUNITY CLUSTER GOVERNING BOARD.
2 9 The governing body of each governmental unit participating
2 10 in a community cluster shall appoint two of its members to a
2 11 community cluster governing board. However, an alternative
2 12 board composition may be agreed upon by the participating
2 13 governmental units. A member of the governing board shall
2 14 serve for two years or until the member's term on the
2 15 governing body of the governmental unit expires, whichever is
2 16 earlier. A vacancy on the governing board shall be filled in
2 17 the same manner as the original appointment. A member of the
2 18 governing board shall not receive compensation for service on
2 19 the governing board.
2 20 Sec. 4. Section 28E.38, Code 2005, is amended by striking
2 21 the section and inserting in lieu thereof the following:
2 22 28E.38 POWERS AND DUTIES OF GOVERNING BOARD == EXISTING
2 23 BONDED INDEBTEDNESS == TAXING AUTHORITY.
2 24 1. The governing board shall identify governmental
2 25 functions, services, facilities, development of
2 26 infrastructure, or economic development efforts that will be
2 27 shared or jointly provided or operated within the community
2 28 cluster.
2 29 2. The governing board shall establish an official name
2 30 for the community cluster.
2 31 3. The governing board may provide for the transfer or
2 32 other disposition of property and other rights, claims,
2 33 assets, and franchises as they relate to a shared governmental
2 34 function within the community cluster. A governmental unit
2 35 participating in a community cluster may make donations of
3 1 property, real or personal, including gratuitous leases, to
3 2 the community cluster and the governing board as deemed proper
3 3 and appropriate in aiding the community cluster and the
3 4 governing board to effectuate their purposes.
3 5 4. The governing board may provide for the transfer,
3 6 reorganization, abolition, adjustment, and absorption or
3 7 merger of existing boards, existing subordinate service
3 8 districts, local improvement districts, and agencies of the
3 9 participating governmental units to the extent they relate to
3 10 a shared governmental function within the community cluster.
3 11 The authority provided in this subsection does not include the
3 12 authority to merge or consolidate local governments as an
3 13 alternative form of county government or an alternative form
3 14 of city government.
3 15 5. The governing board may determine the boundaries of the
3 16 service areas within the community cluster and shall provide
3 17 for administration of the provision of services in each of the
3 18 designated service areas.
3 19 6. The governing board may employ and fix the compensation
3 20 of administrative, technical, professional, and clerical
3 21 assistance as necessary to administer a shared governmental
3 22 function.
3 23 7. a. The governing board may adopt budgets for shared
3 24 governmental functions within the community cluster and may
3 25 levy property taxes to the extent the taxing authority of a
3 26 participating governmental unit is transferred to the
3 27 community cluster by the governing body of that participating
3 28 governmental unit to fund a shared governmental function. The
3 29 governing board in its budget shall allocate the revenue
3 30 obligation of each governmental unit participating in the
3 31 community cluster, subject to the approval of the governing
3 32 body of each participating governmental unit. The governing
3 33 board shall follow the same procedures for adoption of a
3 34 budget as if the community cluster were a city and the
3 35 governing board a city council.
4 1 b. The governing board shall provide for the transfer of
4 2 all or portions of the taxing authority of governmental units
4 3 that are participating in the community cluster to the
4 4 governing board of the community cluster to fund a shared
4 5 governmental function, subject to the approval of the
4 6 governing body of each participating governmental unit. The
4 7 maximum rates of taxes authorized to be levied by a
4 8 governmental unit participating in a community cluster shall
4 9 be reduced by an amount equal to that portion of the levy
4 10 rates transferred to the authority of the governing board.
4 11 c. In lieu of transferring property taxing authority to a
4 12 governing board, a governmental unit participating in a
4 13 community cluster may meet its revenue obligations to the
4 14 community cluster by transferring other sources of revenue
4 15 authorized to be collected by the governmental unit.
4 16 8. The governing board may accept donations,
4 17 contributions, grants, or gifts from individuals,
4 18 associations, municipal and private corporations, and the
4 19 United States, or any agency or instrumentality of the United
4 20 States, and may enter into agreements in connection therewith.
4 21 9. The governing board may issue bonded indebtedness to
4 22 the extent authorized in section 28E.39.
4 23 10. By December 1 of each year, the governing board shall
4 24 provide a report relating to shared governmental functions and
4 25 administration of the community cluster to the governing body
4 26 of each governmental unit participating in the community
4 27 cluster.
4 28 Sec. 5. Section 28E.39, Code 2005, is amended by striking
4 29 the section and inserting in lieu thereof the following:
4 30 28E.39 ISSUANCE OF BONDS == APPROVAL BY ELECTORATE.
4 31 1. The governing board may propose the expenditure of
4 32 funds, the issuance of revenue bonds, entering into a lease=
4 33 purchase agreement, or the issuance of general obligation
4 34 bonds for the following:
4 35 a. Acquisition of a construction site and construction of
5 1 a building or facility for common public use by two or more
5 2 governmental units participating in the community cluster.
5 3 b. Purchase of an existing building or facility for public
5 4 use, or conversion of a building or facility previously owned
5 5 and maintained by a governmental unit for public use by two or
5 6 more governmental units participating in the community
5 7 cluster.
5 8 c. Equipping or furnishing a new or existing building or
5 9 facility for public use by two or more governmental units
5 10 participating in the community cluster.
5 11 d. Operation, maintenance, or improvement of a building or
5 12 facility for public use by two or more governmental units
5 13 participating in the community cluster.
5 14 e. Any other aspect of construction, acquisition,
5 15 furnishing, operation, or maintenance of a building or
5 16 facility for public use by two or more governmental units
5 17 participating in the community cluster, such other aspect
5 18 having been proposed by the governing board and not otherwise
5 19 prohibited by law.
5 20 2. The proposal shall be forwarded to the governing body
5 21 of each governmental unit participating in the community
5 22 cluster that is listed in the proposal as being allocated a
5 23 portion of the cost for any of the purposes in subsection 1,
5 24 paragraphs "a" through "e". The proposal shall specify the
5 25 purposes for which the building or facility shall be used, the
5 26 estimated cost of the building or facility, the estimated
5 27 amount of the cost to be allocated to each of the
5 28 participating governmental units, the proportion and method of
5 29 allocating the expenses of the operation and maintenance of
5 30 the building or facility or improvement, and the disposition
5 31 to be made of any revenues to be derived from operation of the
5 32 building or facility.
5 33 3. If a proposal for expenditure of funds, for issuance of
5 34 revenue bonds, or for issuance of general obligation bonds
5 35 described in the proposal as essential county purpose bonds or
6 1 essential corporate purpose bonds is approved by the governing
6 2 body of each governmental unit named in the proposal, the
6 3 governing board may include such expenditures in its budget
6 4 for the following fiscal year. If a proposal for issuance of
6 5 general obligation bonds described in the proposal as general
6 6 county purpose bonds or general corporate purpose bonds or for
6 7 entering into a lease=purchase agreement is approved by the
6 8 governing body of each governmental unit named in the
6 9 proposal, the governing board shall direct the county
6 10 commissioner of elections to submit the proposition at a
6 11 special election. The special election may be held on the
6 12 same day as the general election if the county commissioner
6 13 determines that the elections will not conflict. Only those
6 14 registered voters living within the governmental units named
6 15 in the proposal may vote on the proposition. The proposition
6 16 shall be adopted if the vote in favor of the proposition is
6 17 equal to at least sixty percent of the vote cast for and
6 18 against the proposition in each governmental unit named in the
6 19 proposal.
6 20 4. The governing board when issuing indebtedness pursuant
6 21 to this section shall follow the procedures for issuance of
6 22 debt as if the governing board were a city council or a county
6 23 board of supervisors and the applicable bonding provisions of
6 24 chapters 74, 75, 331, and 384 shall apply.
6 25 5. Indebtedness issued pursuant to this section shall
6 26 constitute a debt of the governmental units named in the
6 27 proposal in the same proportion that the cost of the project
6 28 is allocated to the governmental units and such indebtedness
6 29 is subject to any statutory or constitutional limitation on
6 30 issuance of debt if the debt would be subject to such
6 31 limitation if it were issued by a governmental unit acting
6 32 alone.
6 33 Sec. 6. Section 28E.40, Code 2005, is amended by striking
6 34 the section and inserting in lieu thereof the following:
6 35 28E.40 JOINING COMMUNITY CLUSTER OR TERMINATING
7 1 PARTICIPATION.
7 2 1. A governmental unit, by resolution, may request to join
7 3 an existing community cluster. The governing body of the
7 4 governmental unit shall forward the resolution to the
7 5 governing bodies of each governmental unit participating in
7 6 the community cluster. If each of the governing bodies
7 7 approves by resolution the request to join the existing
7 8 community cluster, the governmental unit is included in the
7 9 community cluster and shall appoint two of the members of its
7 10 governing body to the governing board of the community
7 11 cluster.
7 12 2. A governmental unit, by resolution, may terminate its
7 13 participation in a community cluster. Immediately upon its
7 14 adoption by the governing body of the governmental unit
7 15 seeking termination of its participation in the community
7 16 cluster, the resolution shall be forwarded to the governing
7 17 board. The governing board is not empowered to deny
7 18 termination but it may set a timetable, not to exceed eighteen
7 19 months after adoption of the resolution, for termination to be
7 20 fully effective.
7 21 Sec. 7. Section 331.461, subsection 2, Code 2005, is
7 22 amended by adding the following new paragraph:
7 23 NEW PARAGRAPH. i. Port facilities or port facilities
7 24 systems, including without limitation, real and personal
7 25 property, water, buildings, improvements, and equipment useful
7 26 and suitable for taking care of the needs of commerce and
7 27 shipping, and also including without limitation, wharves,
7 28 docks, basins, piers, quay walls, warehouses, tunnels, belt
7 29 railway facilities, cranes, dock apparatus, and other
7 30 machinery necessary for the convenient and economical
7 31 accommodation and handling of watercraft of all kinds and of
7 32 freight and passengers.
7 33 EXPLANATION
7 34 This bill expands current statutory provisions relating to
7 35 establishment of community clusters. Community clusters are
8 1 cooperative community units established for the joint exercise
8 2 of powers by two or more governmental units.
8 3 Currently, a governmental unit that may participate in a
8 4 community cluster is defined as a city, county, or special
8 5 taxing district. The bill adds townships, school districts,
8 6 and merged areas to the definition of governmental unit. The
8 7 bill defines "shared governmental functions" to include joint
8 8 delivery of services, joint operation of facilities, joint
8 9 development of infrastructure, and joint fostering of economic
8 10 development.
8 11 The bill provides that a community cluster and its
8 12 governing board shall have all the rights, powers, duties,
8 13 privileges, and immunities, as they relate to shared
8 14 governmental functions, as those governmental units
8 15 participating in the community cluster. However, the
8 16 governing body of a community cluster shall not levy a tax
8 17 unless authorized by the governing body of each participating
8 18 governmental unit.
8 19 The bill requires the governing body of each governmental
8 20 unit participating in a community cluster to appoint two of
8 21 its members to a community cluster governing board unless a
8 22 different board membership is agreed upon by the participating
8 23 governmental units. The term of a member of the governing
8 24 board is two years or until the member's term on the governing
8 25 body expires, whichever is earlier.
8 26 The bill requires the governing board to identify shared
8 27 governmental functions of the community cluster. The bill
8 28 authorizes the governing board to provide for transfer or
8 29 disposition of property; reorganization of existing
8 30 administrative boards, agencies, and services districts;
8 31 acceptance of donations, contributions, grants, or gifts; and
8 32 employment of necessary personnel insofar as all of these
8 33 things relate to administration of shared governmental
8 34 functions within the community cluster. The bill also
8 35 provides that the governing board has the authority to adopt
9 1 budgets for shared governmental functions. The bill requires
9 2 the governing board to provide for the transfer of all or a
9 3 portion of the taxing authority of participating governmental
9 4 units to fund shared governmental functions. The authority to
9 5 transfer taxing authority is subject to the approval of the
9 6 governing body of each participating governmental unit. Any
9 7 amount of taxing authority transferred shall be subtracted
9 8 from the statutory maximum, if any, for that governmental
9 9 unit. A participating governmental unit may transfer other
9 10 revenues, in lieu of transferring property tax authority, in
9 11 order to meet its revenue obligations to the community
9 12 cluster. The bill requires the governing board to report
9 13 annually to the governing body of each governmental unit
9 14 participating in the community cluster.
9 15 The bill authorizes the governing board to expend funds,
9 16 enter into lease=purchase agreements, and issue revenue bonds
9 17 or general obligation bonds for acquisition, construction,
9 18 improvement, equipping, maintenance, and operation of a
9 19 building or facility for common public use by two or more
9 20 governmental units participating in the community cluster.
9 21 The proposal to expend funds or issue debt for a building or
9 22 facility must be approved by the governing body of each
9 23 governmental unit named in the proposal as being allocated a
9 24 portion of the cost of the building or facility. The bill
9 25 provides that the governing board is to proceed as if it were
9 26 a city or a county expending the funds or issuing the
9 27 indebtedness. This means, among other things, that if the
9 28 proposal identifies the bonds as general county purpose or
9 29 general corporate purpose bonds, issuance of such bonds must
9 30 be approved at an election. Indebtedness that would be
9 31 subject to any statutory or constitutional limitation if a
9 32 governmental unit had issued the debt acting alone shall be
9 33 considered debt of the governmental unit as part of the
9 34 community cluster in the same proportion that the costs of the
9 35 building or facility were allocated to the governmental unit.
10 1 The bill allows a governmental unit, by resolution, to
10 2 request joining an existing community cluster. The request to
10 3 join must be approved by resolution by the governing bodies of
10 4 each governmental unit participating in the community cluster.
10 5 The bill also allows a governmental unit, by resolution, to
10 6 terminate participation in a community cluster. The governing
10 7 board may not deny termination, but it may set a timetable,
10 8 not to exceed 18 months, for termination to be fully
10 9 effective.
10 10 The bill strikes a section of the Code that required an
10 11 election before a community cluster could share property tax
10 12 revenues. The bill also strikes a section of the Code
10 13 relating to establishment of regional metropolitan service
10 14 areas.
10 15 The bill adds port facilities and port facilities systems
10 16 to the definition of county enterprise. Currently, port
10 17 facilities and port facilities systems are included in the
10 18 definition of city enterprise.
10 19 LSB 1080HH 81
10 20 sc/sh/8