HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON RAECKER)

A BILL FOR

An Act relating to flood mitigation by establishing a flood mitigation program, establishing a flood mitigation board, authorizing the use of certain sales tax revenue and other financial assistance for flood mitigation projects, establishing a flood mitigation fund, authorizing the issuance of bonds for certain flood mitigation projects, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 29C.8, subsection 3, Code 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  h.  Carry out duties related to the flood mitigation program and the flood mitigation board under chapter 418.
   Sec. 2.  Section 331.430, subsection 2, Code 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  Payments required to be made from the debt service fund to a flood project fund under section 418.14, subsection 5.
   Sec. 3.  Section 384.4, subsection 1, Code 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  Payments required to be made from the debt service fund to a flood project fund under section 418.14, subsection 5.
   Sec. 4.  NEW SECTION.  418.1  Definitions.
   For purposes of this chapter, unless the context otherwise requires:
   1.  “Base year” means the fiscal year ending during the calendar year in which the governmental entity’s project is approved by the board under section 418.9.
   2.  “Board” means the flood mitigation board as created in section 418.5.
   3.  “Division” means the homeland security and emergency management division of the department of public defense.
   4.  “Governmental entity” means any of the following:
   a.  A county.
   b.  A city.
   c.  A joint board or other legal or administrative entity established or designated in an agreement pursuant to chapter 28E between a county and one or more cities located within the county.
   5.  “Project” means the construction and reconstruction of levees, embankments, impounding reservoirs, or conduits that are necessary for the protection of property from the effects of floodwaters and may include the deepening, widening, alteration, change, diversion, or other improvement of watercourses if necessary for the protection of such property from the effects of floodwaters.
   6.  “Retail establishment” means a business operated by a retailer as defined in section 423.1.
   7.  “Sales tax” means the sales and services tax imposed pursuant to section 423.2.
   Sec. 5.  NEW SECTION.  418.4  Projects.
   1.  A governmental entity may use the moneys in its flood project fund established pursuant to section 418.13 to fund projects that meet the requirements of this section.
   2.  Prior to undertaking a project, the governmental entity shall adopt a project plan. The project plan shall include a detailed description of the project, clearly state the cost of the project and the amount of debt to be incurred for purposes of funding the project, and include a detailed description of all funding sources for the project, including information relating to either the proposed use of financial assistance from the flood mitigation fund under section 418.10 or the proposed use of sales tax increment revenues received under section 418.12. The project plan shall also include information related to the approval criteria in section 418.9, subsection 2.
   3.  A governmental entity shall not undertake a project under this chapter unless all of the following conditions are met:
   a.  Bidding for the project has been completed.
   b.  The project has been approved to receive financial assistance in an amount equal to at least twenty percent of the total project cost or thirty million dollars, whichever is less, under the federal Water Resources Development Act or other federal program providing assistance specifically for hazard mitigation.
   c.  The project plan has been approved by the board under section 418.9.

   d.  Following approval of the project plan by the board, the governmental entity has adopted a resolution authorizing the use of sales tax increment revenue from the governmental entity’s flood project fund, if sales tax increment revenue was approved by the board as a funding source for the project. Within ten days of adoption, the governmental entity shall provide a copy of the resolution to the department of revenue.
   4.  A governmental entity shall not seek approval from the board for a project if the governmental entity previously had a project approved pursuant to section 418.9 or if the governmental entity previously was part of a governmental entity as defined in section 418.1, subsection 4, paragraph “c”,that had a project approved pursuant to section 418.9.
   4A.  If a project is eligible for state financial assistance under section 29C.6, subsection 17, such project is ineligible for approval by the board under this chapter.
   5.  Following approval of a project under section 418.9, the governmental entity shall on or before December 15 of each year submit a report to the board detailing all of the following:
   a.  The current status of the project.
   b.  Total expenditures and the types of expenditures that have been made related to the project.
   c.  The amount of the total project cost remaining as of the date the report is submitted.
   d.  The amounts, types, and sources of funding being used.
   e.  The amount of bonds issued or other indebtedness incurred for the project, including information related to the rate of interest, length of term, costs of issuance, and net proceeds. The report shall also include the amounts and types of moneys used for payment of such bonds or indebtedness.
   6.  A governmental entity may contract with a council of governments to perform any duty or power authorized under this chapter or for the completion of a project.
   Sec. 6.  NEW SECTION.  418.5  Flood mitigation board.
   1.  The flood mitigation board is established consisting of nine voting members and four ex officio, nonvoting members, and is located for administrative purposes within the division. The administrator of the division shall provide office space, staff assistance, and necessary supplies and equipment for the board. The administrator shall budget funds to pay the necessary expenses of the board. In performing its functions, the board is performing a public function on behalf of the state and is a public instrumentality of the state.
   2.  The voting membership of the board shall include all of the following:
   a.  Four members of the general public. Each general public member of the board shall have demonstrable experience or expertise in the field of natural disaster or flood mitigation.
   b.  The director of the department of natural resources or the director’s designee.
   c.  The secretary of agriculture or the secretary’s designee.
   d.  The treasurer of state or the treasurer’s designee.
   e.  The administrator of the division or the administrator’s designee.
   f.  The executive director of the Iowa finance authority or the executive director’s designee.
   3.  The general public members shall be appointed by the governor, subject to confirmation by the senate. The appointments shall comply with sections 69.16 and 69.16A.
   4.  The chairperson and vice chairperson of the board shall be designated by the governor from the board members listed in subsection 2. In case of the absence or disability of the chairperson and vice chairperson, the members of the board shall elect a temporary chairperson by a majority vote of those members who are present and voting.
   5.  The members appointed under subsection 2, paragraph “a”, shall be appointed to three-year staggered terms and the terms shall commence and end as provided by section 69.19. If a vacancy occurs, a successor shall be appointed to serve the unexpired term. A successor shall be appointed in the same manner and subject to the same qualifications as the original appointment.
   6.  The board’s ex officio membership shall include four members of the general assembly with one each appointed by the majority leader of the senate, the minority leader of the senate, the speaker of the house of representatives, and the minority leader of the house of representatives. A legislative member serves for a term as provided in section 69.16B in an ex officio, nonvoting capacity and is eligible for per diem and expenses as provided in section 2.10.
   7.  A majority of the board constitutes a quorum.
   Sec. 7.  NEW SECTION.  418.6  Expenses of board members.
   The voting members of the board are entitled to receive reimbursement for actual expenses incurred while engaged in the performance of official duties. A member of the board is not eligible to receive the additional expense allowance provided in section 7E.6, subsection 2.
   Sec. 8.  NEW SECTION.  418.7  Division duties.
   The division, subject to approval by the board, shall adopt administrative rules pursuant to chapter 17A necessary to administer the flood mitigation program. The division shall provide the board with assistance in implementing administrative functions and providing technical assistance and application assistance to applicants under the program.
   Sec. 9.  NEW SECTION.  418.8  Flood mitigation program.
   1.  The board shall establish and the division, subject to direction and approval by the board, shall administer a flood mitigation program to assist governmental entities in undertaking projects approved under this chapter. The flood mitigation program shall include projects approved by the board to utilize either financial assistance from the flood mitigation fund created under section 418.10 or sales tax revenues remitted to the governmental entity under section 418.12. A governmental entity shall not be approved by the board to utilize both financial assistance from the flood mitigation fund and sales tax revenues remitted to the governmental entity.
   2.  The board shall, by rules adopted under section 418.7, prescribe application instructions, forms, and other requirements deemed necessary to operate the flood mitigation program.
   3.  The board may contract with or otherwise consult with the Iowa flood center, established under section 466C.1, to assist the board in administering the flood mitigation program.
   4.  The board shall submit a written report to the governor and the general assembly on or before January 15 of each year. The report shall include information relating to all projects approved by the board for inclusion in the flood mitigation program, the status of such projects, summaries of each report submitted to the board under section 418.4, subsection 5, information relating to the types of funding being used for each approved project, including all indebtedness incurred by the applicable governmental entities, and any recommendations for legislative action to modify the provisions of this chapter.
   Sec. 10.  NEW SECTION.  418.9  Project application review.
   1.
  a.  A governmental entity shall submit an application to the board for approval of a project plan. The board shall not approve a project for inclusion in the program if the application is submitted after January 1, 2016.
   b.  The application shall specify whether the governmental entity is requesting financial assistance from the flood mitigation fund or approval for the use of sales tax revenues. Applications for financial assistance from the flood mitigation fund shall describe the type and amount of assistance requested. Applications for the use of sales tax revenues shall state the amount of sales tax revenues necessary for completion of the project.
   2.  Each application shall include or have attached to the application, the governmental entity’s project plan adopted under section 418.4, subsection 2. When reviewing applications, in addition to the project plan, the board shall consider, at a minimum, all of the following:
   a.  Whether the project is designed to mitigate future flooding of property that has sustained significant flood damage and is likely to sustain significant flood damage in the future.
   b.  Whether the project plan addresses the impact of flooding both upstream and downstream from the area where the project is to be undertaken.
   c.  Whether the area that would benefit from the project’s flood mitigation efforts is valuable to the economic viability of the state or is of historic value to the state.
   d.  The extent to which the project would utilize local matching funds. The board shall not approve a project unless at least fifty percent of the total cost of the project, less any federal financial assistance for the project, is funded using local matching funds, and unless the project will result in nonpublic investment in the governmental entity’s area as defined in section 418.11, subsection 3, of an amount equal to fifty percent of the total cost of the project. For purposes of this paragraph,“nonpublic investment” means investment by nonpublic entities consisting of capital investment or infrastructure improvements occurring in anticipation of or as a result of the project during the period of time between July 1, 2008, and ten years following completion of the project.
   e.  The extent of nonfinancial support committed to the project from public and nonpublic sources.
   f.  The net number of new jobs proposed to be created as a direct result of the project and its completion in the area for which the project is designed to mitigate future flooding.
   g.  Whether the project plan is consistent with the applicable comprehensive, countywide emergency operations plan in effect.
   h.  Whether financial assistance through the flood mitigation program is essential to meet the necessary expenses or serious needs of the governmental entity related to flood mitigation.
   3.  Upon review of the applications, the board, following consultation with the department of economic development, shall approve, defer, or deny the applications. If a project plan is denied, the board shall state the reasons for the denial and the governmental entity may resubmit the application so long as the application is filed on or before January 1, 2016. If a project plan application is approved, the board shall specify whether the governmental entity is approved for the use of sales tax revenues under section 418.12 or whether the governmental entity is approved to receive financial assistance from the flood mitigation fund under section 418.10. If the board approves a project plan application that includes financial assistance from the flood mitigation fund, the board shall negotiate and execute on behalf of the division all necessary agreements to provide such financial assistance.
   4.  The board shall not approve a project plan application that includes financial assistance from the flood mitigation fund or the use of sales tax revenue to pay principal and interest on or to refinance any debt or other obligation existing prior to the approval of the project.
   5.  Upon approval of an application for financial assistance under the program, the board shall notify the treasurer of state regarding the amount of moneys needed to satisfy the award of financial assistance and the terms of the award. The treasurer of state shall notify the division any time moneys are disbursed to a recipient of financial assistance under the program.
   6.  If, following approval of a project application under the program, it is determined that the amount of federal financial assistance under section 418.4, subsection 3, paragraph “b”, exceeds the amount of federal financial assistance specified in the application, the board shall reduce the award of financial assistance from the flood mitigation fund or reduce the amount of sales tax revenue to be received for the project by a corresponding amount.
   Sec. 11.  NEW SECTION.  418.10  Flood mitigation fund.
   1.  A flood mitigation fund is created as a separate and distinct fund in the state treasury under the control of the board and consists of moneys appropriated by the general assembly and any other moneys available to and obtained or accepted by the board for placement in the fund. Moneys in the fund shall only be used for the purposes of this section.
   2.  Payments of interest, repayments of moneys loaned pursuant to this chapter, and recaptures of grants, if provided for in the financial assistance agreements, shall be deposited in the fund.
   3.  The moneys in the fund shall be used to provide assistance in the form of grants, loans, and forgivable loans. The use of moneys in the fund for such assistance shall be on a first-come, first-served basis. The board may only provide financial assistance from moneys in the fund.
   4.  Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
   5.  If any portion of the moneys appropriated for deposit in the fund have not been awarded during the fiscal year for which the appropriation is made, the portion which has not been awarded may be utilized by the board to provide financial assistance under the program in subsequent fiscal years.
   6.  The board may make a multiyear commitment to a governmental entity of up to four million dollars in any one fiscal year.
   7.  Moneys received by a governmental entity from the fund shall be deposited in the governmental entity’s flood project fund under section 418.13.
   8.  The board is not required to award financial assistance pursuant to this section unless moneys are appropriated to and available from the fund.

   9.  Following completion of all projects approved to utilize financial assistance from the fund and upon a determination by the board that remaining moneys in the fund are no longer needed for the program, all moneys remaining in the fund or subsequently deposited in the fund shall be credited for deposit in the general fund of the state.
   Sec. 12.  NEW SECTION.  418.11  Sales tax increment calculation.
   1.  The department of revenue shall calculate quarterly the amount of increased sales tax revenues to be deposited in the sales tax increment fund pursuant to section 423.2, subsection 11, paragraph “a”, subparagraph (2).
   2.  The department of revenue shall calculate the amount of the increase for purposes of subsection 1 as follows:
   a.  Determine the amount of sales tax revenue collected by the department in each applicable area specified in subsection 3, during the corresponding quarter in the base year from retail establishments located in such areas.
   b.  Determine the amount of sales tax revenue collected by the department in each applicable area specified in subsection 3, during the corresponding quarter in each subsequent calendar year from retail establishments located in such areas.
   c.  Subtract the base year quarterly amount determined in paragraph“a” from the subsequent calendar year quarterly amount determined in paragraph “b”.
   d.  The result of the calculation in paragraph “c”, to the extent that the amount of revenue in the quarter of the subsequent year exceeds the total amount of revenue in the corresponding quarter of the base year, shall constitute the amount of increased revenues for purposes of subsection 1.
   3.
  a.  For projects approved for a governmental entity as defined in section 418.1, subsection 4, paragraph “a”, the area used to determine the sales tax increment shall include only the unincorporated areas of the county.
   b.  For projects approved for a governmental entity as defined in section 418.1, subsection 4, paragraph “b”, the area used to determine the sales tax increment shall include only the incorporated areas of the city.
   c.  For projects approved for a governmental entity as defined in section 418.1, subsection 4, paragraph “c”, the area used to determine the sales tax increment shall include the incorporated areas of each city that is participating in the chapter 28E agreement and the unincorporated areas of the county.
   4.  Each governmental entity shall assist the department of revenue in identifying retail establishments in the governmental entity’s applicable area that are collecting sales tax. This process shall be ongoing until the governmental entity ceases to utilize sales tax revenue under this chapter.
   Sec. 13.  NEW SECTION.  418.12  Sales tax increment fund.
   1.  A sales tax increment fund is established as a separate and distinct fund in the state treasury under the control of the department of revenue consisting of the amount of the increased state sales and services tax revenues collected by the department of revenue within each applicable area specified in section 418.11, subsection 3, and deposited in the fund pursuant to section 423.2, subsection 11, paragraph “a”, subparagraph (2). Moneys in the fund shall only be used for the purposes of this section.
   2.  An account is created within the fund for each governmental entity that has adopted a resolution under section 418.4, subsection 3, paragraph “d”.
   3.  The department of revenue shall credit to the fund the moneys described in subsection 1 beginning the first day of the quarter following receipt of a resolution under section 418.4, subsection 3, paragraph “d”. However, in no case shall a sales tax increment be calculated under section 418.11 or such moneys be credited to the fund under this section prior to January 1, 2013.
   4.
  a.  A governmental entity may request remittance of the moneys in the governmental entity’s account within the fund. Such requests shall be made not more than quarterly. Requests for remittance shall be submitted on forms prescribed by the department of revenue. Requests for remittance shall be made for the amount of moneys in the governmental entity’s account necessary to pay the governmental entity’s costs or obligations related to the project, according to the sales tax revenue funding needs specified in the approved project plan. A governmental entity shall not, however, during any fiscal year receive remittances under this section exceeding fifteen million dollars or the total yearly amount of increased revenue in the governmental entity’s applicable area, whichever is less. The total amount of remittances during any fiscal year for all governmental entities approved to use sales tax revenues under this chapter shall not exceed, in the aggregate, thirty million dollars. Remittances from the department of revenue shall be deposited in the governmental entity’s flood project fund under section 418.13.
   b.  The department of revenue shall adopt rules for the remittance of moneys to governmental entities.
   5.  If the department of revenue determines that the revenue accruing to the fund or accounts within the fund exceeds thirty million dollars or exceeds the amount necessary for the purposes of this chapter if the amount necessary is less than thirty million dollars, then those excess moneys shall be credited by the department of revenue for deposit in the general fund of the state.
   Sec. 14.  NEW SECTION.  418.13  Flood project fund.
   1.  Sales tax revenue remitted by the department of revenue to a governmental entity under section 418.12 or financial assistance received by a governmental entity pursuant to section 418.10 shall be deposited in the governmental entity’s flood project fund created for purposes of this chapter and shall be used to fund the governmental entity’s approved project and to pay principal and interest on bonds issued pursuant to section 418.14, if applicable.
   2.  In addition to the moneys received pursuant to section 418.10 or 418.12, a governmental entity may deposit in the flood project fund any other moneys lawfully received by the governmental entity.
   Sec. 15.  NEW SECTION.  418.14  Bond issuance.
   1.
  a.  A governmental entity receiving sales tax revenues pursuant to this chapter is authorized to issue bonds that are payable from revenues deposited in the governmental entity’s flood project fund created pursuant to section 418.13 for the purpose of funding a project in the area from which sales tax revenues will be utilized.
   b.  A governmental entity shall have the authority to pledge irrevocably to the payment of the bonds an amount of revenue derived from the sales tax revenue received by the governmental entity pursuant to section 418.12 for each of the years the bonds remain outstanding.
   2.
  a.  If a governmental entity elects to authorize the issuance of bonds payable as provided in this section, the governmental entity shall follow the authorization procedures for cities set forth in section 384.83.
   b.  A governmental entity shall have the authority to issue bonds for the purpose of refunding outstanding bonds issued under this section without otherwise complying with the notice and hearing provisions of section 384.83.
   3.  If less than four calendar quarters have elapsed following the submission of the resolution to the department of revenue under section 418.4, subsection 3, paragraph “d”, the sales tax collected within the shorter period may be adjusted to project the collections of the designated portion for the full year for the purpose of determining the amount of the bonds which may be issued.
   4.
  a.  Except as otherwise provided in this section, bonds issued pursuant to this section shall not be subject to the provisions of any other law or charter relating to the authorization, issuance, or sale of bonds.
   b.  The bonds may be issued in one or more series and shall comply with all of the following:
   (1)  The bonds shall bear the date of issuance.
   (2)  The bonds shall specify whether they are payable on demand or the time of maturity.
   (3)  The bonds shall bear interest at a rate not exceeding that permitted by chapter 74A.
   (4)  The bonds shall be in a denomination or denominations, be in the form, have the rank or priority, be executed in the manner, be payable in the medium of payment, at the place or places, be subject to the terms of redemption, with or without premium, be secured in the manner, and have the other characteristics, as may be provided by the resolution authorizing their issuance.
   c.  The bonds may be sold at public or private sale at a price as may be determined by the governmental entity.
   5.
  a.  Bonds, notes, or other obligations issued by a governmental entity for purposes of financing a project under this chapter are not an obligation of this state. Except as provided in paragraph “b”, bonds, notes, or other obligations issued by a governmental entity for purposes of financing a project under this chapter are not an obligation of any political subdivision of this state other than the governmental entity. A governmental entity shall not pledge the credit or taxing power of this state. Except as provided in paragraph “b”, a governmental entity shall not pledge the credit or taxing power of any political subdivision of this state other than the governmental entity or make its debts payable out of any of the moneys except those in the governmental entity’s flood project fund.
   b.  If the moneys in the governmental entity’s flood project fund are insufficient to pay the governmental entity’s costs related to bonds, notes, or other obligations issued under this chapter, the amounts necessary to pay such costs shall be transferred for deposit in the governmental entity’s flood project fund from the debt service fund of the county or the debt service fund of the city or county for a governmental entity as defined in section 418.1, subsection 4, paragraph “c”, as provided in the chapter 28E agreement. The chapter 28E agreement for a governmental entity as defined in section 418.1, subsection 4, paragraph “c”, shall specify the participating city or county responsible for any payment from a debt service fund required under this paragraph.
   Sec. 16.  NEW SECTION.  418.15  Durational limitation on use of revenues —— property disposition.
   1.  A governmental entity shall not utilize sales tax revenue under this chapter after twenty-five years from the date the governmental entity’s project was approved by the board.
   2.  If the governmental entity ceases to need the sales tax revenues prior to the expiration of the limitation under subsection 1, the governmental entity shall notify the director of revenue.
   3.  Upon the receipt of a notification pursuant to subsection 2, or the expiration of the limitation under subsection 1, the department of revenue shall cease to credit revenues to the governmental entity’s account in the sales tax increment fund.
   4.  All property and improvements acquired by a governmental entity as defined in section 418.1, subsection 4, paragraph “c”, relating to a project shall be transferred to the county or city designated in the chapter 28E agreement to receive such property and improvements. The city or county to which such property or improvements are transferred shall, unless otherwise provided in the chapter 28E agreement, be solely responsible for the ongoing maintenance and support of such property and improvements.
   Sec. 17.  Section 423.2, subsection 11, Code 2011, is amended to read as follows:
   11.
  a.  (1)  All revenues arising under the operation of the provisions of this section shall be deposited into the general fund of the state.
   (2)  Subsequent to the deposit into the general fund of the state, the director shall credit an amount equal to six cents of every dollar of the amount of the increase in sales subject to the tax imposed under this section and made in the applicable area of a governmental entity that is approved to use sales tax revenues under chapter 418 into an account created for that governmental entity in the sales tax increment fund created in section 418.12. The director shall credit the moneys beginning the first day of the quarter following adoption of the resolution pursuant to section 418.4, subsection 3, paragraph “d”.
   b.  Subsequent to the deposit into the general fund of the state and after the transfer of such pursuant to paragraph “a”, the department shall do the following in the order prescribed:
   (1)  Transfer the revenues collected under chapter 423B, the department shall transfer.
   (2)  Transfer one-sixth of such the remaining revenues to the secure an advanced vision for education fund created in section 423F.2. This paragraph subparagraph (2) is repealed December 31, 2029.
   (3)  Credit that portion of the sales tax receipts described in paragraph “a”, subparagraph (2).
   Sec. 18.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
   This bill relates to flood mitigation by establishing a flood mitigation program, establishing a flood mitigation board, authorizing the use of certain sales tax revenue and other financial assistance for certain flood-related projects, establishing a flood mitigation fund, and authorizing the issuance of bonds for certain flood mitigation projects.
   The bill authorizes certain governmental entities to undertake flood-related projects. The bill defines “project” to mean the construction and reconstruction of levees, embankments, impounding reservoirs, or conduits that are necessary for the protection of property from the effects of floodwaters and may include the deepening, widening, alteration, change, diversion, or other improvement of watercourses if necessary for the protection of such property from the effects of floodwaters. The bill requires a project to be preceded by adoption of a project plan that includes a detailed description of the project, clearly states the cost of the project and the amount of debt to be incurred for purposes of funding the project, and includes a description of all funding sources for the project. The project plan must also include information related to the approval criteria used by the flood mitigation board.
   The bill prohibits a governmental entity from undertaking a project unless bidding for the project is complete, the project has been approved to receive certain federal financial assistance, the project plan has been approved by the flood mitigation board, and the governmental entity has adopted and filed with the department of revenue a resolution authorizing the use of sales tax increment revenue, if sales tax increment revenue was designated as a funding source for the project. The bill authorizes a governmental entity to contract with a council of governments to perform any duty or power authorized in the bill or for the completion of the project.
   The bill provides that a governmental entity may not seek approval from the board for a project if the governmental entity previously had a project approved under the flood mitigation program or was part of a governmental entity that previously had a project approved by the board under the flood mitigation program.
   The bill provides that a project eligible for state financial assistance under Code section 29C.6(17) is ineligible for approval by the board under the flood mitigation program.
   The bill requires a governmental entity that has a project approved by the flood mitigation board to prepare and submit an annual report on or before December 15 to the board detailing the status and progress of the project.
   The bill establishes a flood mitigation board within the homeland security and emergency management division of the department of public defense consisting of nine voting members and four ex offico, nonvoting legislative members. The voting membership of the board includes four members of the general public having demonstrable experience or expertise in the field of natural disaster or flood mitigation, the director of the department of natural resources or the director’s designee, the secretary of agriculture or the secretary’s designee, the treasurer of state or the treasurer’s designee, the administrator of the homeland security and emergency management division or the administrator’s designee, and the executive director of the Iowa finance authority or the executive director’s designee. Appointment of the general public members shall be made by the governor, shall be subject to confirmation by the senate, and shall be for three-year staggered terms. The members of the board are entitled to receive reimbursement for actual expenses incurred while engaged in the performance of official duties.
   The bill requires the board to establish and administer a flood mitigation program to assist governmental entities in undertaking approved projects. The flood mitigation program includes projects approved by the board to utilize either financial assistance from the flood mitigation fund created in the bill or sales tax increment revenues remitted to the governmental entity. The bill prohibits a project from being approved by the board to utilize both financial assistance from the flood mitigation fund and sales tax increment revenues for the same project. The bill authorizes the board to consult with the Iowa flood center to assist the board in administering the flood mitigation program.
   Governmental subdivisions must submit project applications to the flood mitigation board for approval. The board is prohibited from approving applications submitted after January 1, 2016. The application shall specify whether the governmental entity is requesting financial assistance from the flood mitigation fund or approval for the use of sales tax increment revenues. Applications for financial assistance from the flood mitigation fund are required to describe the type and amount of assistance requested. Applications for the use of sales tax increment revenues shall state the amount of such revenues necessary for completion of the project. Each application shall include, or have attached to the application, the governmental entity’s project plan.
   The bill requires the board, when reviewing applications, in addition to the governmental entity’s project plan, to consider, at a minimum, whether the project is designed to mitigate future flooding of property that has sustained significant flood damage and is likely to sustain significant flood damage in the future, whether the project addresses the impact of flooding both upstream and downstream from the area where the project is to be undertaken, whether the area that would benefit from the project’s flood mitigation efforts is valuable to the economic viability of the state or is of historic value to the state, the extent to which the project would utilize local matching funds including whether the project meets specific local matching funds requirements, whether the project will result in specified amounts of nonpublic investment, as defined in the bill, the extent of nonfinancial support from public and nonpublic sources, the net number of new jobs proposed to be created as a direct result of the project and its completion in the area for which the project is designed to mitigate future flooding, whether the project is consistent with the applicable comprehensive, countywide emergency operations plan, and whether financial assistance through the flood mitigation program is essential to meet the necessary expenses or serious needs of the governmental entity related to flood mitigation.
   Upon review of the applications, the flood mitigation board, following consultation with the department of economic development, shall approve, defer, or deny the applications. If a project plan is denied, the board shall state the reasons for the denial and the governmental entity may resubmit the application so long as the application is filed on or before January 1, 2016. 
   If a project plan application is approved, the board shall specify whether the governmental entity is approved for the use of sales tax increment revenues or whether the governmental entity is approved to receive financial assistance from the flood mitigation fund. If the board approves a project plan application that includes financial assistance from the flood mitigation fund, the board shall negotiate and execute on behalf of the division all necessary agreements to provide such financial assistance. The bill provides for the reduction of an award of financial assistance from the flood mitigation fund or a reduction in the amount of sales tax increment revenues to be received for the project if federal financial assistance exceeds the amount stated in the project plan application. 
   The bill requires the flood mitigation board to prepare and submit an annual report to the governor and the general assembly on or before January 15 containing certain information relating to the projects approved by the board, certain information relating to the governmental entities undertaking each project, and any recommendations for legislative action to modify the provisions of new Code chapter 418. 
   The bill establishes a flood mitigation fund as a separate and distinct fund in the state treasury under the control of the board. Moneys in the flood mitigation fund are used to provide assistance in the form of grants, loans, and forgivable loans. Assistance provided from the fund shall be on a first-come, first-served basis. The board may make a multiyear commitment to a governmental entity of up to $4 million in any one fiscal year. Following completion of all projects approved to utilize financial assistance from the fund and upon a determination by the board that remaining moneys in the fund are no longer needed for the program, all moneys remaining in the fund or subsequently deposited in the fund shall be credited for deposit in the general fund of the state.
   The bill authorizes, upon approval of the flood mitigation board, governmental entities to use increased sales tax revenue collected within a specified area to fund projects. For a governmental entity that is a county, the area used to determine the sales tax increment shall include only the unincorporated areas of the county. For a governmental entity that is a city, the area used to determine the sales tax increment shall include only the incorporated areas of the city. For a governmental entity that is operated under a Code chapter 28E agreement, the area used to determine the sales tax increment shall include the incorporated areas of each city that is participating in the Code chapter 28E agreement and the unincorporated areas of the participating county.
   To determine the amount of the increase in sales tax revenue, the department of revenue calculates the amount of sales tax revenues collected in a specified quarter in the base year and the amount of tax revenues collected during the corresponding quarter in subsequent years. The department of revenue then subtracts the base year amount from the amounts in the subsequent years to arrive at the amount of the increase.
   The bill creates a sales tax increment fund within the department of revenue and an account in the fund for each governmental entity approved by the flood mitigation board to use such revenues for a project. The department credits the amount of the governmental entity’s increased revenues to the governmental entity’s account. However, the bill specifies that in no case shall a sales tax increment be credited to the fund prior to January 1, 2013.
   The bill allows each governmental entity to request remittance of the moneys in the governmental entity’s account within the fund. Such requests shall be made not more than quarterly. Requests for remittance shall be made for the amount of moneys in the governmental entity’s account necessary to pay the governmental entity’s costs or obligations related to the project, according to the sales tax revenue funding needs specified in the approved project plan. A governmental entity shall not, however, receive remittances during any fiscal year exceeding $15 million or the total yearly amount of increased revenue in the governmental entity’s applicable area, whichever is less. Remittances from the department of revenue are deposited in the governmental entity’s flood project fund. In addition, the total amount of remittances during any fiscal year for all governmental entities approved to use sales tax increment revenues under this chapter shall not exceed, in the aggregate, $30 million. If the department of revenue determines that the revenue accruing to the sales tax increment fund or accounts within the fund exceed $30 million or the amount necessary for the purposes of new Code chapter 418 if less than $30 million, then those excess moneys shall be credited by the department of revenue for deposit in the general fund of the state.
   The bill provides that moneys deposited in a governmental entity’s flood project fund shall be used to fund projects and to pay principal and interest on bonds issued under the bill, if applicable. The bill also provides that in addition to the sales tax revenues remitted by the department of revenue and financial assistance from the flood mitigation fund, a governmental entity may deposit in the flood project fund any other moneys lawfully received by the governmental entity.
   The bill authorizes the issuance of bonds by a governmental entity that are payable from moneys deposited in the governmental entity’s flood project fund if the governmental entity is receiving sales tax revenue under the bill. In issuing the bonds, the governmental entity must comply with the revenue bond authorization procedures applicable to cities pursuant to Code section 384.83. The bill provides that bonds, notes, or other obligations issued by a governmental entity are not an obligation of the state. The bill also provides that, except as specifically provided in the bill, bonds, notes, or other obligations issued by a governmental entity are not an obligation of any political subdivision of the state except the governmental entity. The bill prohibits a governmental entity from pledging the credit or taxing power of the state. Except as specifically provided in the bill, a governmental entity is prohibited from pledging the credit or taxing power of a political subdivision of the state.
   If the moneys in the governmental entity’s flood project fund are insufficient to pay the governmental entity’s costs related to bonds, notes, or other obligations issued under the bill, the amounts necessary to pay such costs shall be transferred for deposit in the governmental entity’s flood project fund from the debt service fund of the county or the debt service fund of the city or county for a governmental entity operating under a Code chapter 28E agreement, as provided in the Code chapter 28E agreement.
   The bill provides that a governmental entity shall not utilize sales tax increment revenue under the bill after 25 years from the date the governmental entity’s project was approved by the board. The bill provides that if the governmental entity ceases to need the sales tax increment revenues prior to the expiration of such limitation, the governmental entity shall notify the director of revenue.
   Under the bill, all property and improvements acquired by a governmental entity operated under a Code chapter 28E agreement relating to a project shall be transferred to the county or city designated in the Code chapter 28E agreement to receive such property and improvements. The city or county to which such property or improvements are transferred shall, unless otherwise provided in the Code chapter 28E agreement, be solely responsible for the ongoing maintenance and support of such property and improvements.
   The bill takes effect upon enactment.