HF 2347 (LSB 5499HV (2) 83)

HOUSE FILE 2347

BY  COMMITTEE ON LOCAL GOVERNMENT

(SUCCESSOR TO HSB 546)

A BILL FOR

An Act relating to the approval and use of increased local sales and services tax revenues to fund urban renewal projects and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423B.10, Code 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  7.  An ordinance under this section providing for the use of a designated amount of the increased local sales and services tax revenue shall not be adopted on or after the effective date of this Act.
    Sec. 2.  ORDINANCES ADOPTED PRIOR TO EFFECTIVE DATE.  The amount of the increased local sales and services taxes received by a city as the result of an ordinance adopted under chapter 423B prior to the effective date of this Act that have been designated by a city by ordinance to fund urban renewal projects pursuant to section 423B.10 shall be deposited in the city’s special fund created in section 403.19, subsection 2, and shall be used to fund urban renewal projects located in an urban renewal area.
    Sec. 3.  OBLIGATIONS OF CITIES.  This Act shall not relieve, impair, or otherwise alter the obligations of a city relating to bonds issued pursuant to chapter 403 prior to the effective date of this Act or contracts made prior to the effective date of this Act in connection with an urban renewal project.
    Sec. 4.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
   This bill relates to the use of sales and services tax revenues to fund urban renewal projects.
   Current law allows an eligible city to provide by ordinance for the use of a designated amount of the increased local sales and services tax revenues attributable to retail establishments in an urban renewal area to fund urban renewal projects located in the area. 
   The bill provides that an ordinance under Code section 423B.10 designating an amount of increased local sales and services tax revenue for urban renewal projects may not be adopted on or after the effective date of the bill.
   The bill provides that any local sales and services taxes received as the result of an ordinance adopted prior to the effective date of the bill and designated for urban renewal projects must be deposited in the city’s special fund and used to fund urban renewal projects.
   The bill does not relieve, impair, or alter the obligations of a city in regard to certain bonds or contracts. 
   The bill takes effect upon enactment.