H.F. 152 Section 1. Section 468.500, Code 2013, is amended to read 1 as follows: 2 468.500 Trustees authorized. 3 1. a. In the manner provided in this subchapter , any 4 drainage or levee district in which the original construction 5 has been completed and paid for by bond issue or otherwise, 6 may be placed under the control and management of a board of 7 three trustees to be elected by the persons owning land in the 8 district that has been assessed for benefits. 9 b. A drainage or levee district under the control of a city 10 council as provided in subchapter II , part 3, may be placed 11 under the control and management of a board of trustees by 12 the city council following the procedures provided in this 13 subchapter part 2 for the county board of supervisors. 14 2. An overlying drainage or levee district that controls and 15 manages improvements and rights-of-way surrendered by a board 16 of supervisors or board of trustees of a contained district, 17 in accordance with sections 468.256 through 468.259, shall 18 continue to be controlled and managed by a board of trustees 19 as provided in part 3. 20 Sec. 2. NEW SECTION . 468.538 Scope. 21 This part applies when the board of trustees of an overlying 22 district accepts all improvements and rights-of-way surrendered 23 by a board of supervisors or board of trustees of a contained 24 district, in accordance with sections 468.256 through 468.259. 25 In addition, after such acceptance, the overlying district must 26 include at least thirty-five thousand acres with a pumping 27 station, regardless of whether the drainage or levee district 28 is located in more than one county. Such a district shall 29 continue to be controlled and managed by a board of trustees 30 elected as provided in this part. 31 Sec. 3. NEW SECTION . 468.539 Qualified application. 32 Part 1 of this subchapter shall also apply to this part, 33 except as follows: 34 1. The trustees of the overlying district serving on the 35 -1- LSB 1035HV (2) 85 da/sc 1/ 5

H.F. 152 board at the time of acceptance as described in section 468.538 1 shall be considered initially elected as the trustees of the 2 drainage or levee district as provided in sections 468.502, 3 468.503, and 468.521. 4 2. a. The board of trustees described in subsection 1 shall 5 do all of the following: 6 (1) Establish the overlying district as a new drainage 7 or levee district, which must include all improvements and 8 rights-of-way surrendered by a board of supervisors or board of 9 trustees of the contained district. 10 (2) Divide the new drainage or levee district into three 11 election districts in the same manner as a board of supervisors 12 acting pursuant to sections 468.504 and 468.505. 13 b. The petition described in section 468.501 is not required 14 to be filed or considered under this subsection. 15 3. Each of the three persons elected as trustee to serve 16 on a new drainage or levee district established pursuant to an 17 election held by the board of trustees described in subsection 18 1 shall hold office for a staggered term as provided in section 19 468.518. A person elected as a trustee of the new drainage 20 or levee district shall be elected from a specified election 21 district, unless the person is elected at large as provided in 22 subsection 4. 23 4. The board of trustees described in subsection 1 or a 24 subsequent board of trustees of the new drainage or levee 25 district may provide for the election of two additional persons 26 to serve as trustees. One person’s initial term shall be for 27 one year and the second person’s initial term shall be for two 28 years in the same manner as provided in section 468.518. 29 5. Votes shall be determined as provided pursuant to either 30 section 468.510 or 468.511 in the same manner as was determined 31 for the overlying district. 32 Sec. 4. DIVISION OF CHAPTER 468, SUBCHAPTER III. The Code 33 editor shall codify section 468.500, as amended by this Act, as 34 part 1 of chapter 468, subchapter III; sections 468.501 through 35 -2- LSB 1035HV (2) 85 da/sc 2/ 5

H.F. 152 468.537 as part 2 of chapter 468, subchapter III; and sections 1 468.538 and 468.539 as part 3 of chapter 468, subchapter III. 2 Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 3 immediate importance, takes effect upon enactment. 4 EXPLANATION 5 BACKGROUND —— TRANSFER OF JURISDICTION TO A GOVERNING BODY 6 OF A DRAINAGE OR LEVEE DISTRICT. When a drainage or levee 7 district is first established, it is managed by a board of 8 supervisors in the county where the district is located or 9 by a joint board of supervisors if the district extends into 10 more than one county (Code chapter 468, subchapter I, part 11 1). After the district has been established, the board of 12 supervisors, or joint board of supervisors, may transfer a 13 portion of its jurisdiction to another governing body. For 14 example, in some cases, a city may assume management of the 15 entire district (Code chapter 468, subchapter II, part 3). In 16 another case, the landowners of the district may petition the 17 county or counties where the district is located to conduct 18 a special election in order to transfer jurisdiction of the 19 district to a three-member board of elected trustees (Code 20 chapter 468, subchapter III). In that case, the county board 21 of supervisors, or joint board of supervisors, conducts an 22 initial election (Code section 468.502) and the board of 23 trustees conducts subsequent elections (Code sections 468.518, 24 468.519, and 468.521). Where a district contains 20,000 25 acres or more, the board of supervisors, or joint board of 26 supervisors, may divide the district into three election 27 districts. A trustee residing in each election district is 28 elected by landowners for the entire district (Code section 29 468.504). Subsequently elected, trustees serve for staggered 30 three-year terms (Code sections 468.518 and 468.519). 31 BACKGROUND —— TRANSFER OF MUTUAL TERRITORY FROM ONE DRAINAGE 32 OR LEVEE DISTRICT TO ANOTHER. Two or more drainage or levee 33 districts may share mutual territory. The district which 34 has jurisdiction of all such territory is referred to as an 35 -3- LSB 1035HV (2) 85 da/sc 3/ 5

H.F. 152 overlying district and each district which has jurisdiction 1 of a portion of that larger territory is referred to as a 2 contained district (Code section 468.250). The governing body 3 of a contained district or overlying district may be a board of 4 supervisors, joint board of supervisors, or board of trustees. 5 After receiving a dissolution petition, the governing body of 6 a contained district must conduct a hearing to dissolve the 7 district and the governing body of the overlying district may 8 conduct a hearing and accept improvements and rights-of-way 9 surrendered by the board of the contained district (Code 10 sections 468.257 and 468.258), or in the alternative, conduct 11 an election of land users (Code section 468.259). 12 BILL —— SCOPE. The bill establishes a new process for the 13 election of trustees of a new district formed when an overlying 14 district accepts all improvements and rights-of-way surrendered 15 by a board of supervisors or board of trustees of a contained 16 district (Code sections 468.256 through 468.259), if the new 17 district includes at least 35,000 acres with a pumping station, 18 regardless of whether the new district is located in more than 19 one county. 20 BILL —— PETITION AND ELECTION TO ESTABLISH A BOARD OF TRUSTEE 21 FORM OF GOVERNANCE NOT REQUIRED. The bill provides that the 22 current Code procedures under Code chapter 468, subchapter III, 23 requiring a petition and election by landowners to establish 24 a trustee form of governance, do not apply. Instead, the 25 board of trustees currently serving the overlying district 26 is responsible for conducting the election of succeeding 27 trustees to the new district in the same manner as if the 28 board of trustees initially elected under the supervision of 29 a board of supervisors, or joint board of supervisors, would 30 be responsible for conducting the subsequent election of 31 succeeding trustees to an existing district. 32 BILL —— NEW ELECTION REQUIREMENTS. The bill provides that 33 trustees of the overlying district must divide the new drainage 34 or levee district into three election districts in the same 35 -4- LSB 1035HV (2) 85 da/sc 4/ 5

H.F. 152 manner as a board of supervisors acting pursuant to Code 1 sections 468.504 and 468.505. The individuals elected to the 2 board as trustees must serve staggered terms notwithstanding 3 any special requirements applicable to districts with pumping 4 stations in Code section 568.519. In addition, either the 5 board of trustees of the overlying district or a subsequent 6 board of trustees of the new district may provide for the 7 election of two additional persons to serve at large for 8 staggered three-year terms. 9 BILL —— CHAPTER ORGANIZATION. The bill requires the Code 10 editor to organize Code chapter 468, subchapter III, into three 11 new parts in order to enhance the Code’s readability. 12 BILL —— EFFECTIVE DATE. The bill takes effect upon 13 enactment. 14 -5- LSB 1035HV (2) 85 da/sc 5/ 5