House File 619 - Introduced



                                       HOUSE FILE       
                                       BY  FORD


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

                                      A BILL FOR

  1 An Act relating to urban renewal and tax increment financing, and
  2    including effective date and applicability date provisions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2336HH 83
  5 md/sc/14

PAG LIN



  1  1    Section 1.  Section 368.26, unnumbered paragraph 3, Code
  1  2 2009, is amended to read as follows:
  1  3    For the purposes of this section, "protected farmland"
  1  4 means land that is part of a century farm as that term is
  1  5 defined in section 403.17, subsection 10.  For the purposes of
  1  6 this section, "century farm" means a farm in which at least
  1  7 forty acres of such farm have been held in continuous
  1  8 ownership by the same family for one hundred years or more.
  1  9 For the purposes of this section, "county legislation" means
  1 10 any ordinance, motion, resolution, or amendment adopted by a
  1 11 county pursuant to section 331.302.
  1 12    Sec. 2.  Section 403.2, subsection 3, Code 2009, is amended
  1 13 by striking the subsection.
  1 14    Sec. 3.  Section 403.4, subsections 1 and 2, Code 2009, are
  1 15 amended to read as follows:
  1 16    1.  One or more slum, or blighted or economic development
  1 17 areas exist in the municipality.
  1 18    2.  The rehabilitation, conservation, redevelopment,
  1 19 development, or a combination thereof, of the area is
  1 20 necessary in the interest of the public health, safety, or
  1 21 welfare of the residents of the municipality.
  1 22    Sec. 4.  Section 403.5, subsection 1, Code 2009, is amended
  1 23 to read as follows:
  1 24    1.  A municipality shall not approve an urban renewal
  1 25 project for an urban renewal area unless the governing body
  1 26 has, by resolution, determined the area to be a slum area,
  1 27 blighted area, economic development area or a combination of
  1 28 those areas, and designated the area as appropriate for an
  1 29 urban renewal project.  The local governing body shall not
  1 30 approve an urban renewal plan until a general plan for the
  1 31 municipality has been prepared.  For this purpose and other
  1 32 municipal purposes, authority is vested in every municipality
  1 33 to prepare, to adopt and to revise from time to time, a
  1 34 general plan for the physical development of the municipality
  1 35 as a whole, giving due regard to the environs and metropolitan
  2  1 surroundings.  A municipality shall not acquire real property
  2  2 for an urban renewal project unless the local governing body
  2  3 has approved the urban renewal project in accordance with
  2  4 subsection 4.
  2  5    Sec. 5.  Section 403.5, subsection 4, paragraph b,
  2  6 subparagraph (1), subparagraph divisions (c) and (d), Code
  2  7 2009, are amended by striking the subparagraph divisions.
  2  8    Sec. 6.  Section 403.5, subsection 7, Code 2009, is amended
  2  9 to read as follows:
  2 10    7.  Notwithstanding any other provisions of this chapter,
  2 11 where the local governing body certifies that an area is in
  2 12 need of redevelopment or rehabilitation as a result of a
  2 13 flood, fire, hurricane, earthquake, storm, or other
  2 14 catastrophe respecting which the governor of the state has
  2 15 certified the need for disaster assistance under Pub. L. No.
  2 16 81=875, Eighty=first Congress, 64 Stat. 1109, codified at 42
  2 17 U.S.C. } 1855==1855g 5121 et seq. or other federal law, the
  2 18 local governing body may approve an urban renewal plan and an
  2 19 urban renewal project with respect to such area without regard
  2 20 to the provisions of subsection 4 and without regard to
  2 21 provisions of this section requiring notification and
  2 22 consultation, a general plan for the municipality, and a
  2 23 public hearing on the urban renewal plan or project.
  2 24    Sec. 7.  Section 403.6, subsection 7, Code 2009, is amended
  2 25 to read as follows:
  2 26    7.  To plan for the relocation of persons, including
  2 27 families, business concerns and others, displaced by an urban
  2 28 renewal project, and to make relocation payments to or with
  2 29 respect to such persons for moving expenses and losses of
  2 30 property for which reimbursement or compensation is not
  2 31 otherwise made, including the making of such payments financed
  2 32 by the federal government.  Other provisions of the Code
  2 33 notwithstanding, in making such payments on projects not
  2 34 federally funded, the municipality may pay relocation
  2 35 assistance benefits in the amounts authorized by the Uniform
  3  1 Relocation Assistance and Real Property Acquisition Policies
  3  2 Act of 1970, Pub.  L. No. 91=646, as amended by the Uniform
  3  3 Relocation Act Amendments of 1987, Title IV, Pub. L. No.
  3  4 100=17 42 U.S.C. } 4601 et seq.
  3  5    Sec. 8.  Section 403.7, subsection 1, unnumbered paragraph
  3  6 1, Code 2009, is amended to read as follows:
  3  7    A municipality shall have the right to acquire by
  3  8 condemnation any interest in real property, including a fee
  3  9 simple title thereto, which it may deem necessary for or in
  3 10 connection with an urban renewal project under this chapter,
  3 11 subject to the limitations on eminent domain authority in
  3 12 chapter 6A.  However, a municipality shall not condemn
  3 13 agricultural land included within an economic development
  3 14 urban renewal area for any use unless the owner of the
  3 15 agricultural land consents to condemnation or unless the
  3 16 municipality determines that the land is necessary or useful
  3 17 for any of the following:
  3 18    Sec. 9.  Section 403.17, subsections 10, 12, and 14, Code
  3 19 2009, are amended by striking the subsections.
  3 20    Sec. 10.  Section 403.17, subsection 23, Code 2009, is
  3 21 amended to read as follows:
  3 22    23.  "Urban renewal area" means a slum area, blighted area,
  3 23 economic development area, or combination of the areas, which
  3 24 the local governing body designates as appropriate for an
  3 25 urban renewal project.
  3 26    Sec. 11.  Section 403.17, subsection 25, unnumbered
  3 27 paragraph 1, Code 2009, is amended to read as follows:
  3 28    "Urban renewal project" may include undertakings and
  3 29 activities of a municipality in an urban renewal area for the
  3 30 elimination and for the prevention of the development or
  3 31 spread of slums and blight, may include the designation and
  3 32 development of an economic development area in an urban
  3 33 renewal area, and may involve slum clearance and redevelopment
  3 34 in an urban renewal area, or rehabilitation or conservation in
  3 35 an urban renewal area, or any combination or part thereof in
  4  1 accordance with an urban renewal program.  The undertakings
  4  2 and activities may include:
  4  3    Sec. 12.  Section 403.17, subsection 25, paragraph a, Code
  4  4 2009, is amended to read as follows:
  4  5    a.  Acquisition of a slum area, blighted area, economic
  4  6 development area, or portion of the areas;
  4  7    Sec. 13.  Section 403.19, subsection 2, Code 2009, is
  4  8 amended to read as follows:
  4  9    2.  That portion of the taxes each year in excess of such
  4 10 amount shall be allocated to and when collected be paid into a
  4 11 special fund of the municipality to pay the principal of and
  4 12 interest on loans, moneys advanced to, or indebtedness,
  4 13 whether funded, refunded, assumed, or otherwise, including
  4 14 bonds issued under the authority of section 403.9, subsection
  4 15 1, incurred by the municipality to finance or refinance, in
  4 16 whole or in part, an urban renewal project within the area,
  4 17 and to provide assistance for low and moderate income family
  4 18 housing as provided in section 403.22, except that taxes for
  4 19 the regular and voter=approved physical plant and equipment
  4 20 levy of a school district imposed pursuant to section 298.2
  4 21 and taxes for the payment of bonds and interest of each taxing
  4 22 district must be collected against all taxable property within
  4 23 the taxing district without limitation by the provisions of
  4 24 this subsection.  However, all or a portion of the taxes for
  4 25 the physical plant and equipment levy shall be paid by the
  4 26 school district to the municipality if the auditor certifies
  4 27 to the school district by July 1 the amount of such levy that
  4 28 is necessary to pay the principal and interest on bonds issued
  4 29 by the municipality to finance an urban renewal project, which
  4 30 bonds were issued before July 1, 2001.  Indebtedness incurred
  4 31 to refund bonds issued prior to July 1, 2001, shall not be
  4 32 included in the certification.  Such school district shall pay
  4 33 over the amount certified by November 1 and May 1 of the
  4 34 fiscal year following certification to the school district.
  4 35 Unless and until the total assessed valuation of the taxable
  5  1 property in an urban renewal area exceeds the total assessed
  5  2 value of the taxable property in such area as shown by the
  5  3 last equalized assessment roll referred to in subsection 1,
  5  4 all of the taxes levied and collected upon the taxable
  5  5 property in the urban renewal area shall be paid into the
  5  6 funds for the respective taxing districts as taxes by or for
  5  7 the taxing districts in the same manner as all other property
  5  8 taxes.  When such loans, advances, indebtedness, and bonds, if
  5  9 any, and interest thereon, have been paid, all moneys
  5 10 thereafter received from taxes upon the taxable property in
  5 11 such urban renewal area shall be paid into the funds for the
  5 12 respective taxing districts in the same manner as taxes on all
  5 13 other property.  In those instances where a school district
  5 14 has entered into an agreement pursuant to section 279.64 for
  5 15 sharing of school district taxes levied and collected from
  5 16 valuation described in this subsection and released to the
  5 17 school district, the school district shall transfer the taxes
  5 18 as provided in the agreement.
  5 19    Sec. 14.  Section 404.1, subsection 4, Code 2009, is
  5 20 amended by striking the subsection.
  5 21    Sec. 15.  Section 403.22, Code 2009, is repealed.
  5 22    Sec. 16.  EFFECTIVE AND APPLICABILITY DATES.  This Act,
  5 23 being deemed of immediate importance, takes effect upon
  5 24 enactment and applies to urban renewal areas, urban renewal
  5 25 plans and amendments to urban renewal plans, and urban renewal
  5 26 projects established, approved, or adopted on or after the
  5 27 effective date of this Act.
  5 28                           EXPLANATION
  5 29    This bill makes changes to the law relating to urban
  5 30 renewal and tax increment financing.  Current Code chapter 403
  5 31 authorizes economic development as a purpose for approval of
  5 32 an urban renewal plan and urban renewal projects within the
  5 33 urban renewal area.  The bill eliminates economic development
  5 34 as an authorized purpose under Code chapter 403.  The bill
  5 35 also makes corresponding changes to other sections of the Code
  6  1 to reflect changes made to Code chapter 403.
  6  2    The bill takes effect upon enactment and applies to urban
  6  3 renewal areas, urban renewal plans and amendments to plans,
  6  4 and urban renewal projects established, approved, or adopted
  6  5 on or after the effective date of the bill.
  6  6 LSB 2336HH 83
  6  7 md/sc/14