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 county projects involving the judicial branch.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 331.301, subsection 10, paragraph e, subparagraph (1), subparagraph divisions (a) and (b), Code 2011, are amended to read as follows:
   (a)  The board must follow substantially the authorization procedures of section 331.443 to authorize a lease or lease-purchase contract for personal property which is payable from the general fund. The board must follow substantially the authorization procedures of section 331.443 to authorize a lease or lease-purchase contract for real property which is payable from the general fund if the principal amount of the lease-purchase contract does not exceed the following limits:
   (i)  Four Six hundred thousand dollars in a county having a population of twenty-five thousand or less.
   (ii)  Five Seven hundred fifty thousand dollars in a county having a population of more than twenty-five thousand but not more than fifty thousand.
   (iii)  Six Nine hundred thousand dollars in a county having a population of more than fifty thousand but not more than one hundred thousand.
   (iv)  Eight One million two hundred thousand dollars in a county having a population of more than one hundred thousand but not more than two hundred thousand.
   (v)  One million five hundred thousand dollars in a county having a population of more than two hundred thousand.
   (b)
  (i)  However, if the principal amount of a lease or lease-purchase contract pursuant to this subparagraph (1) is less than twenty-five thousand dollars, the board may authorize the lease or lease-purchase contract without following the authorization procedures of section 331.443.
   (ii)  If the board determines that at least fifty percent of the real property to be leased or lease-purchased is to be used or occupied by the judicial branch as referenced in section 602.1102, the board may follow the authorization procedures of section 331.443 even if the principal amount of the lease or lease-purchase contract exceeds the limitations in subparagraph division (a).
   Sec. 2.  Section 331.402, subsection 3, paragraph d, subparagraph (1), Code 2011, is amended to read as follows:
   (1)
  (a)  The board shall follow substantially the authorization procedures of section 331.443 to authorize a loan agreement for personal property which is payable from the general fund. The board must follow substantially the authorization procedures of section 331.443 to authorize a loan agreement for real property which is payable from the general fund if the principal amount of the loan agreement does not exceed the following limits:
   (a)  (i)  Four Six hundred thousand dollars in a county having a population of twenty-five thousand or less.
   (b)  (ii)  Five Seven hundred fifty thousand dollars in a county having a population of more than twenty-five thousand but not more than fifty thousand.
   (c)  (iii)  Six Nine hundred thousand dollars in a county having a population of more than fifty thousand but not more than one hundred thousand.
   (d)  (iv)  Eight One million two hundred thousand dollars in a county having a population of more than one hundred thousand but not more than two hundred thousand.
   (e)  (v)  One million five hundred thousand dollars in a county having a population of more than two hundred thousand.
   (b)  If the board determines that at least fifty percent of the real property that is the subject of the loan agreement is to be used or occupied by the judicial branch as referenced in section 602.1102, the board may follow the authorization procedures of section 331.443 even if the principal amount of the loan agreement exceeds the limitations in subparagraph division (a).
   Sec. 3.  Section 331.441, subsection 2, paragraph b, subparagraph (5), Code 2011, is amended to read as follows:
   (5)
  (a)  Public buildings, including the site or grounds of, and the erection, equipment, remodeling, or reconstruction of, and additions or extensions to the buildings, and including the provision and maintenance of juvenile detention or shelter care facilities, when the cost principal amount of bonds does not exceed the following limits:
   (a)  (i)  Six hundred thousand dollars in a county having a population of twenty-five thousand or less.
   (b)  (ii)  Seven hundred fifty thousand dollars in a county having a population of more than twenty-five thousand but not more than fifty thousand.
   (c)  (iii)  Nine hundred thousand dollars in a county having a population of more than fifty thousand but not more than one hundred thousand.
   (d)  (iv)  One million two hundred thousand dollars in a county having a population of more than one hundred thousand but not more than two hundred thousand.
   (e)  (v)  One million five hundred thousand dollars in a county having a population of more than two hundred thousand.
   (b)  If the board determines that at least fifty percent of the public building will be used or occupied by the judicial branch as referenced in section 602.1102, the board may follow the authorization procedures of section 331.443 even if the principal amount of bonds exceeds the limitations in subparagraph division (a).
EXPLANATION
   This bill relates to acquisition of property by a county and county building projects involving the judicial branch.
   The bill provides that if the project involves a real property lease agreement, lease-purchase agreement, or loan agreement, and at least 50 percent of the real property is to be used or occupied by the judicial branch, the county, when entering into the agreement, is authorized to follow the procedures for issuance of essential county purpose bonds. 
   The bill also amends the definition of “essential county purpose”, relating to issuance of bonds for public buildings, to provide that the dollar limitation on the principal amount of the bonds does not apply if at least 50 percent of the public building will be used or occupied by the judicial branch.
   Generally, an essential county purpose does not require approval of the voters.
   The bill increases the threshold amounts that determine whether a project can be undertaken using the procedures for essential county purpose bonds when the project involves a lease, lease-purchase, or loan agreement. The bill increases the threshold amounts in the following manner: For counties with a population of 25,000 or less, the threshold amount is increased from $400,000 to $600,000; for counties with a population of more than 25,000 but not more than 50,000, the threshold amount is increased from $500,000 to $750,000; for counties with a population of more than 50,000 but not more than 100,000, the threshold amount is increased from $600,000 to $900,000; for counties with a population of more than 100,000 but not more than 200,000, the threshold amount is increased from $800,000 to $1.2 million; and for counties with a population of more than 200,000, the threshold amount is increased from $1 million to $1.5 million.