HF 2175 (LSB 6075HH (4) 83)

HOUSE FILE 2175

BY  TYMESON

A BILL FOR

An Act to prohibit city annexations containing territory not voluntarily included by a landowner.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 9.2, Code 2009, is amended to read as follows:
   9.2  Records relating to cities.

   The secretary of state shall receive and preserve in the secretary’s office all papers transmitted to the secretary in relation to city development, including incorporation, discontinuance, annexation, or boundary adjustment; and shall keep an alphabetical list of cities in a book provided for that purpose, in which shall be entered the name of the city, the county in which situated, and the date of incorporation, discontinuance, annexation, or boundary adjustment.
    Sec. 2.  Section 368.1, subsection 4, Code 2009, is amended to read as follows:
   4.  “Boundary adjustment” means annexation, severance or consolidation.
    Sec. 3.  Section 368.6, Code 2009, is amended to read as follows:
   368.6  Intent.

   It is the intent of the general assembly to provide an annexation approval procedure which gives due consideration to the wishes of the residents of territory to be annexed, and to the interests of the residents of all territories affected by an annexation. The general assembly presumes that a voluntary annexation of territory more most closely reflects the wishes of the residents each resident of territory to be annexed, and, therefore, intends that the annexation approval procedure include a presumption of validity for voluntary annexation approval.
    Sec. 4.  Section 368.7, subsection 1, Code 2009, is amended by striking the subsection and inserting in lieu thereof the following:
   1.  All of the owners of land in a territory adjoining a city may apply in writing to the council of the adjoining city requesting annexation of the territory. An owner’s land shall not be included in the territory to be annexed, unless the landowner has joined in the application to the council.
    Sec. 5.  Section 368.7, subsection 4, Code 2009, is amended by striking the subsection.
    Sec. 6.  Section 368.7, subsection 5, Code 2009, is amended to read as follows:
   5.  In the discretion of a city council, the resolution provided for in subsection 1, paragraph “d”, or subsection 2 or 3, may include a provision for a transition for the imposition of city taxes against property within the annexation area as provided in section 368.11, subsection 3, paragraph “m”.  The provision shall allow for an exemption from taxation of the following percentages of assessed valuation according to the following schedule:
   a.  For the first and second years, seventy-five percent.
   b.  For the third and fourth years, sixty percent.
   c.  For the fifth and sixth years, forty-five percent.
   d.  For the seventh and eighth years, thirty percent.
   e.  For the ninth and tenth years, fifteen percent.

   An alternative schedule may be adopted by the city council. However, an alternative schedule shall not allow a greater exemption than that provided in this subsection. The exemption shall be applied in the levy and collection of taxes. The provision may also allow for the partial provision of city services during the time in which the exemption from taxation is in effect. If the city council provides for a transition for the imposition of city taxes against property in an annexation area, all property owners included in the annexation area must receive the transition upon completion of the annexation.
    Sec. 7.  Section 368.11, subsection 1, Code 2009, is amended to read as follows:
   1.  A petition for incorporation, discontinuance, or boundary adjustment may be filed with the board by a city council, a county board of supervisors, a regional planning authority, or five percent of the registered voters of a city or territory involved in the proposal. Notice of the filing, including a copy of the petition, must be served upon the council of each city for which a discontinuance or boundary adjustment is proposed, the board of supervisors for each county which contains a portion of a city to be discontinued or territory to be incorporated, annexed or severed, the council of a city if an incorporation includes territory within the city’s urbanized area, and any regional planning authority for the area involved.
    Sec. 8.  Section 368.11, subsection 3, paragraph j, Code 2009, is amended to read as follows:
   j.  In a case of annexation or incorporation, the petition must state that none of the territory is within a city.
    Sec. 9.  Section 368.11, subsection 3, paragraphs m and n, Code 2009, are amended by striking the paragraphs.
    Sec. 10.  Section 368.11, subsections 4 through 6, Code 2009, are amended by striking the subsections.
    Sec. 11.  Section 368.12, Code 2009, is amended to read as follows:
   368.12  Dismissal.

   The board may dismiss a petition only if it finds that the petition does not meet the requirements of this chapter, or that substantially the same incorporation, discontinuance, or boundary adjustment has been disapproved by a committee formed to consider the proposal, or by the voters, within the two years prior to the date the petition is filed with the board, or that the territory to be annexed, or a portion of that territory, has been voluntarily annexed under section 368.7. The board shall file for record a statement of each dismissal and the reason for it, and shall promptly notify the parties to the proceeding of its decision.
    Sec. 12.  Section 368.14, unnumbered paragraph 1, Code 2009, is amended to read as follows:
   If an involuntary a petition filed under section 368.11 is not dismissed, the board shall direct the appointment of local representatives to serve with board members as a committee to consider the proposal. Each local representative is entitled to receive from the state the representative’s actual and necessary expenses spent in performance of committee duties. Three board members and one local representative, or if the number of local representatives exceeds one, three board members and at least one-half of the appointed local representatives, are required for a quorum of the committee. A local representative must be a registered voter of the territory or city which the representative represents, and must be selected as follows:
    Sec. 13.  Section 368.14, subsections 3 and 4, Code 2009, are amended to read as follows:
   3.  From a territory to be annexed to or severed from a city, one representative appointed by the county board of supervisors. If there are no registered voters residing in an area to be annexed to or severed from a city, the county board of supervisors shall appoint as local representative an individual owning property in the territory whether or not the individual is a registered voter or appoint a designee of such individual. If the territory is in more than one county, the board shall direct the appointment of a local representative from each county involved by its board of supervisors.
   4.  From a city to which territory is to be annexed or from which territory is to be severed, one representative appointed by the city council. If the territory is in more than one county, the board shall direct the appointment of an equal number of city and county local representatives.
    Sec. 14.  Section 368.14A, Code 2009, is amended to read as follows:
   368.14A  Special local committees.

   When two or more petitions for city development action or applications for voluntary annexation describing common territory are being considered together, the board shall direct the appointment of representatives for each of the petitions to serve on one special committee to consider the petitions. Expense reimbursement and qualifications of these representatives shall be as provided in section 368.14. Three board members and at least one-half of the appointed local representatives are required for a quorum of the special local committee. The manner of appointment of representatives shall be the same as for single petition committees as provided in section 368.14. The special committee shall consider the petitions in conformity with the provisions of this chapter, and shall resolve common territory issues between petitioners. The special committee shall conduct a public hearing on the petitions pursuant to section 368.15. If the common territory issue is resolved, the special local committee may approve the resulting compatible petitions by a single vote or separately, in its discretion.
    Sec. 15.  Section 368.15, Code 2009, is amended to read as follows:
   368.15  Public hearing.

   The committee shall conduct a public hearing on a proposal as soon as practicable. Notice of the hearing must be served upon the council of each city for which a discontinuance or boundary adjustment is proposed, the county board of supervisors for each county which contains a portion of a city to be discontinued or territory to be incorporated, annexed, or severed, and any regional planning authority for the area involved. A notice of the hearing, which includes a brief description of the proposal and a statement of where the petition or plan is available for public inspection, must be published as provided in section 362.3, except that there must be two publications in a newspaper having general circulation in each city and each territory involved in the proposal. Any person may submit written briefs, and in the committee’s discretion, may be heard on the proposal. The board may subpoena witnesses and documents relevant to the proposal.
    Sec. 16.  Section 368.17, Code 2009, is amended to read as follows:
   368.17  When approval barred.

   The committee may not approve:

   1.  An incorporation unless it finds that the city to be incorporated will be able to provide customary municipal services within a reasonable time.
   2.  A discontinuance or severance if the city to be discontinued or the territory to be severed will be surrounded by one or more cities unless a petition an application for annexation of the same area is also filed and approved pursuant to section 368.7.
   3.  A discontinuance or severance unless it finds that the county or another city will be able to provide necessary municipal services to the residents.
   4.  An annexation unless the territory is adjoining the city to which it will be annexed, and the committee finds that the city will be able to provide to the territory substantial municipal services and benefits not previously enjoyed by such territory, and that the motive for annexation is not solely to increase revenues to the city.
   5.  4.  A consolidation unless the cities are contiguous.
   6.  5.  An incorporation of territory, any part of which is within two miles of an existing city, unless a petition an application for annexation of substantially the same territory to such city under section 368.7 has been dismissed, disapproved, or voted upon unfavorably by the city council of the existing city or by the board within the last five years.
   7.  6.  A city development action which creates an island.
    Sec. 17.  Section 368.19, subsections 1 and 2, Code Supplement 2009, are amended to read as follows:
   1.  The committee shall approve or disapprove the petition or plan as amended, within ninety days of the final hearing, and shall file its decision for record and promptly notify the parties to the proceeding of its decision. If a petition or plan is approved, the board shall submit the proposal at an election held on a date specified in section 39.2, subsection 4, paragraph “a” or “b”, whichever is applicable, and the county commissioner of elections shall conduct the election. In a case of incorporation or discontinuance, registered voters of the territory or city may vote, and the proposal is authorized if a majority of those voting approves it. In a case of annexation or severance, registered voters of the territory and of the city may vote, and the proposal is authorized if a majority of the total number of persons voting approves it. In a case of consolidation, registered voters of each city to be consolidated may vote, and the proposal is authorized only if it receives a favorable majority vote in each city. The county commissioner of elections shall publish notice of the election as provided in section 49.53 and shall conduct the election in the same manner as other special elections.
   2.  The city shall provide to the commissioner of elections a map of the area to be incorporated, discontinued, annexed, severed, or consolidated, which must be approved by the commissioner as suitable for posting. The map shall be displayed prominently in at least one place within the voting precinct, and inside each voting booth.
    Sec. 18.  Section 368.20, Code 2009, is amended to read as follows:
   368.20  Procedure after approval.
   1.  After the county commissioner of elections has certified the results to the board, the board shall:
   1.  a.  Serve and publish notice of the result as provided in section 362.3.
   2.  b.  File with the secretary of state and the clerk of each city incorporated or involved in a boundary adjustment, and record with the recorder of each county which contains a portion of any city or territory involved, copies of the proceedings including the original petition or plan and any amendments, the order of the board approving the petition or plan, proofs of service and publication of required notices, certification of the election result, and any other material deemed by the board to be of primary importance to the proceedings. Upon proper filing and expiration of time for appeal, the incorporation, discontinuance, or boundary adjustment is complete. However, if an appeal to any of the proceedings is pending, completion does not occur until the appeal is decided, unless a subsequent date is provided in the proposal. The board shall also file with the state department of transportation a copy of the map and legal land description of each completed incorporation or corporate boundary adjustment completed under sections 368.11 through 368.22 or approved annexation within an urbanized area.
   2.  After approving an application for annexation described in section 368.7, subsection 3, the board shall file with the secretary of state and the clerk of each city involved in the annexation, and record with the recorder of each county which contains a portion of any city or territory involved, copies of the proceedings including the original application and any amendments, the order of the board approving the application, proofs of service and publication of required notices, and any other material deemed by the board to be of primary importance to the proceedings. Upon proper filing and expiration of time for appeal, the annexation is complete. However, if an appeal to any of the proceedings is pending, completion does not occur until the appeal is decided, unless a subsequent date is provided in the application. The board shall also file with the state department of transportation a copy of the map and legal land description of each completed annexation.
    Sec. 19.  Section 368.21, Code 2009, is amended to read as follows:
   368.21  Supervision of procedures.

   When an incorporation, discontinuance, annexation, or boundary adjustment is complete, the board shall supervise procedures necessary to carry out the proposal. In the case of an incorporation, the county commissioner of elections shall conduct an election for mayor and council of the city, who shall serve until their successors take office following the next regular city election. In the case of a discontinuance, the board shall publish two notices as provided in section 368.15 that it will receive and adjudicate claims against the discontinued city for a period of six months from the date of last notice, and shall cause necessary taxes to be levied against the property within the discontinued city to pay claims allowed. All records of a discontinued city shall be deposited with the county auditor of the county designated by the board. Any remaining balances shall be deposited in the county treasury where the former city was located. In the case of a boundary adjustments adjustment or annexation, the proper city officials shall carry out procedures necessary to implement the proposal.
    Sec. 20.  Section 368.25, Code 2009, is amended by striking the section and inserting in lieu thereof the following:
   368.25  Failure to provide municipal services.  
   1.  A landowner within the boundaries of a city may file a petition for severance with the city development board if the petitioner’s land, following annexation under section 368.7, has not been provided municipal services for a period of three years, or the city has failed to show substantial and continuing progress in the provision of municipal services.
   2.  Upon the receipt of a petition under subsection 1, the city development board may initiate proceedings to sever the annexed territory from the city. The board shall notify the city of the severance proceedings and shall hold a public hearing on the proposed severance. The board shall give notice of the hearing in the same manner as notice of a public meeting in section 368.11.
   3.  The board may order severance of all or a portion of the territory and the order to sever is not subject to approval at an election. A city may request that the board allow up to an additional three years to provide municipal services if good cause is shown.
   4.  As an alternative to severance of the territory, the board may impose a moratorium on additional annexation by the city until the city complies with its plan for extending municipal services.
EXPLANATION
   This bill relates to the authority of a city to annex territory.
   Current Code section 368.7 relating to voluntary annexation allows an application for annexation to include up to 20 percent of the land area in the proposed annexation territory without consent of the landowner. The bill amends Code section 368.7 by specifying that a landowner’s property may not be included in the territory to be annexed unless the landowner has joined in the application to the city council.
   The bill eliminates the involuntary annexation procedure in Code section 368.11 by removing annexation from the definition of “boundary adjustment”. The bill removes references to annexation within Code section 368.11 and removes procedures and requirements in Code section 368.11 which only apply to annexation.
   The bill strikes Code section 368.25, relating to a city’s failure to provide municipal services to territory within an annexed area and inserts provisions which allow a landowner to petition the city development board for severance if the city has not provided municipal services within three years of a voluntary annexation under Code section 368.7.
   The bill removes references to nonconsenting landowners and involuntary annexation as it relates to annexation by cities throughout Code chapter 368.