Senate File 314 - Introduced SENATE FILE 314 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO SSB 1062) A BILL FOR An Act relating to the procedures to be followed for certain 1 county projects involving the judicial branch. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1262SV (2) 84 jm/sc

S.F. 314 Section 1. Section 331.301, subsection 10, paragraph e, 1 subparagraph (1), subparagraph divisions (a) and (b), Code 2 2011, are amended to read as follows: 3 (a) The board must follow substantially the authorization 4 procedures of section 331.443 to authorize a lease or 5 lease-purchase contract for personal property which is payable 6 from the general fund. The board must follow substantially 7 the authorization procedures of section 331.443 to authorize 8 a lease or lease-purchase contract for real property which is 9 payable from the general fund if the principal amount of the 10 lease-purchase contract does not exceed the following limits: 11 (i) Four Six hundred thousand dollars in a county having a 12 population of twenty-five thousand or less. 13 (ii) Five Seven hundred fifty thousand dollars in a county 14 having a population of more than twenty-five thousand but not 15 more than fifty thousand. 16 (iii) Six Nine hundred thousand dollars in a county having 17 a population of more than fifty thousand but not more than one 18 hundred thousand. 19 (iv) Eight One million two hundred thousand dollars in a 20 county having a population of more than one hundred thousand 21 but not more than two hundred thousand. 22 (v) One million five hundred thousand dollars in a county 23 having a population of more than two hundred thousand. 24 (b) (i) However, if the principal amount of a lease or 25 lease-purchase contract pursuant to this subparagraph (1) is 26 less than twenty-five thousand dollars, the board may authorize 27 the lease or lease-purchase contract without following the 28 authorization procedures of section 331.443 . 29 (ii) If the board determines that at least fifty percent of 30 the real property to be leased or lease-purchased is to be used 31 or occupied by the judicial branch as referenced in section 32 602.1102, the board may follow the authorization procedures of 33 section 331.443 even if the principal amount of the lease or 34 lease-purchase contract exceeds the limitations in subparagraph 35 -1- LSB 1262SV (2) 84 jm/sc 1/ 4

S.F. 314 division (a). 1 Sec. 2. Section 331.402, subsection 3, paragraph d, 2 subparagraph (1), Code 2011, is amended to read as follows: 3 (1) (a) The board shall follow substantially the 4 authorization procedures of section 331.443 to authorize a 5 loan agreement for personal property which is payable from 6 the general fund. The board must follow substantially the 7 authorization procedures of section 331.443 to authorize a loan 8 agreement for real property which is payable from the general 9 fund if the principal amount of the loan agreement does not 10 exceed the following limits: 11 (a) (i) Four Six hundred thousand dollars in a county 12 having a population of twenty-five thousand or less. 13 (b) (ii) Five Seven hundred fifty thousand dollars in a 14 county having a population of more than twenty-five thousand 15 but not more than fifty thousand. 16 (c) (iii) Six Nine hundred thousand dollars in a county 17 having a population of more than fifty thousand but not more 18 than one hundred thousand. 19 (d) (iv) Eight One million two hundred thousand dollars in 20 a county having a population of more than one hundred thousand 21 but not more than two hundred thousand. 22 (e) (v) One million five hundred thousand dollars in a 23 county having a population of more than two hundred thousand. 24 (b) If the board determines that at least fifty percent of 25 the real property that is the subject of the loan agreement is 26 to be used or occupied by the judicial branch as referenced 27 in section 602.1102, the board may follow the authorization 28 procedures of section 331.443 even if the principal amount of 29 the loan agreement exceeds the limitations in subparagraph 30 division (a). 31 Sec. 3. Section 331.441, subsection 2, paragraph b, 32 subparagraph (5), Code 2011, is amended to read as follows: 33 (5) (a) Public buildings, including the site or grounds of, 34 and the erection, equipment, remodeling, or reconstruction of, 35 -2- LSB 1262SV (2) 84 jm/sc 2/ 4

S.F. 314 and additions or extensions to the buildings, and including the 1 provision and maintenance of juvenile detention or shelter care 2 facilities, when the cost principal amount of bonds does not 3 exceed the following limits: 4 (a) (i) Six hundred thousand dollars in a county having a 5 population of twenty-five thousand or less. 6 (b) (ii) Seven hundred fifty thousand dollars in a county 7 having a population of more than twenty-five thousand but not 8 more than fifty thousand. 9 (c) (iii) Nine hundred thousand dollars in a county having 10 a population of more than fifty thousand but not more than one 11 hundred thousand. 12 (d) (iv) One million two hundred thousand dollars in a 13 county having a population of more than one hundred thousand 14 but not more than two hundred thousand. 15 (e) (v) One million five hundred thousand dollars in a 16 county having a population of more than two hundred thousand. 17 (b) If the board determines that at least fifty percent of 18 the public building will be used or occupied by the judicial 19 branch as referenced in section 602.1102, the board may 20 follow the authorization procedures of section 331.443 even 21 if the principal amount of bonds exceeds the limitations in 22 subparagraph division (a). 23 EXPLANATION 24 This bill relates to acquisition of property by a county and 25 county building projects involving the judicial branch. 26 The bill provides that if the project involves a real 27 property lease agreement, lease-purchase agreement, or loan 28 agreement, and at least 50 percent of the real property is 29 to be used or occupied by the judicial branch, the county, 30 when entering into the agreement, is authorized to follow the 31 procedures for issuance of essential county purpose bonds. 32 The bill also amends the definition of “essential county 33 purpose”, relating to issuance of bonds for public buildings, 34 to provide that the dollar limitation on the principal amount 35 -3- LSB 1262SV (2) 84 jm/sc 3/ 4

S.F. 314 of the bonds does not apply if at least 50 percent of the public 1 building will be used or occupied by the judicial branch. 2 Generally, an essential county purpose does not require 3 approval of the voters. 4 The bill increases the threshold amounts that determine 5 whether a project can be undertaken using the procedures for 6 essential county purpose bonds when the project involves a 7 lease, lease-purchase, or loan agreement. The bill increases 8 the threshold amounts in the following manner: For counties 9 with a population of 25,000 or less, the threshold amount 10 is increased from $400,000 to $600,000; for counties with 11 a population of more than 25,000 but not more than 50,000, 12 the threshold amount is increased from $500,000 to $750,000; 13 for counties with a population of more than 50,000 but not 14 more than 100,000, the threshold amount is increased from 15 $600,000 to $900,000; for counties with a population of more 16 than 100,000 but not more than 200,000, the threshold amount 17 is increased from $800,000 to $1.2 million; and for counties 18 with a population of more than 200,000, the threshold amount is 19 increased from $1 million to $1.5 million. 20 -4- LSB 1262SV (2) 84 jm/sc 4/ 4