House
File
2467
-
Introduced
HOUSE
FILE
2467
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
675)
A
BILL
FOR
An
Act
relating
to
Iowa’s
urban
renewal
law
by
establishing
1
restrictions
on
the
use
of
divided
revenues,
establishing
2
restrictions
on
the
issuance
of
certain
bonds
and
3
indebtedness,
modifying
the
methodology
for
calculating
the
4
amount
of
divided
revenues,
and
including
effective
date
5
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
403.5,
subsection
2,
paragraph
b,
1
subparagraph
(1),
Code
2014,
is
amended
to
read
as
follows:
2
(1)
Prior
to
its
approval
of
an
urban
renewal
plan
which
3
provides
for
a
division
of
revenue
pursuant
to
section
403.19
,
4
the
municipality
shall
mail
the
proposed
plan
by
regular
mail
5
to
the
affected
taxing
entities.
The
municipality
shall
6
include
with
the
proposed
plan
notification
of
a
consultation
7
to
be
held
between
the
municipality
and
affected
taxing
8
entities
prior
to
the
public
hearing
on
the
urban
renewal
plan.
9
If
For
urban
renewal
plans
and
urban
renewal
projects
approved
10
before
the
effective
date
of
this
Act,
if
the
proposed
urban
11
renewal
plan
or
proposed
urban
renewal
project
within
the
urban
12
renewal
area
includes
the
use
of
taxes
revenue
resulting
from
a
13
division
of
revenue
taxes
under
section
403.19
,
subsection
2,
14
for
a
public
building,
including
but
not
limited
to
a
police
15
station,
fire
station,
administration
building,
swimming
16
pool,
hospital,
library,
recreational
building,
city
hall,
or
17
other
public
building
that
is
exempt
from
taxation,
including
18
the
grounds
of,
and
the
erection,
equipment,
remodeling,
or
19
reconstruction
of,
and
additions
or
extensions
to,
such
a
20
building,
the
municipality
shall
include
with
the
proposed
21
plan
notification
an
analysis
of
alternative
development
22
options
and
funding
for
the
urban
renewal
area
or
urban
renewal
23
project
and
the
reasons
such
options
would
be
less
feasible
24
than
the
proposed
urban
renewal
plan
or
proposed
urban
renewal
25
project.
A
copy
of
the
analysis
required
in
this
subparagraph
26
shall
be
included
with
the
urban
renewal
report
required
under
27
section
331.403
or
384.22
,
as
applicable,
and
filed
by
December
28
1
following
adoption
of
the
urban
renewal
plan
or
project.
29
Urban
renewal
plans
and
urban
renewal
projects
approved
on
or
30
after
the
effective
date
of
this
Act
shall
not
include
the
use
31
of
revenue
resulting
from
a
division
of
taxes
under
section
32
403.19,
subsection
2,
for
a
public
building,
including
but
33
not
limited
to
a
police
station,
fire
station,
administration
34
building,
swimming
pool,
hospital,
library,
recreational
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building,
city
hall,
or
other
public
building
that
is
exempt
1
from
taxation,
including
the
grounds
of,
and
the
erection,
2
equipment,
remodeling,
or
reconstruction
of,
and
additions
or
3
extensions
to,
such
a
building.
4
Sec.
2.
Section
403.9,
subsection
2,
Code
2014,
is
amended
5
to
read
as
follows:
6
2.
a.
Bonds
issued
under
this
section
shall
not
constitute
7
an
indebtedness
within
the
meaning
of
any
constitutional
or
8
statutory
debt
limitation
or
restriction,
and
shall
not
be
9
subject
to
the
provisions
of
any
other
law
or
charter
relating
10
to
the
authorization,
issuance
or
sale
of
bonds.
Bonds
issued
11
under
the
provisions
of
this
chapter
are
declared
to
be
issued
12
for
an
essential
public
and
governmental
purpose
and,
together
13
with
interest
thereon
and
income
therefrom,
shall
be
exempted
14
from
all
taxes.
15
b.
A
municipality
shall
not
incur
indebtedness
under
this
16
chapter
or
under
another
provision
of
law
that
qualifies
for
17
payment
from
the
special
fund
created
in
section
403.19,
18
except
for
refunding
or
refinancing
of
indebtedness
that
19
does
not
result
in
an
increase
in
the
municipality’s
total
20
outstanding
indebtedness
payable
from
the
special
fund
created
21
in
section
403.19,
if
the
sum
of
the
municipality’s
outstanding
22
indebtedness
payable
from
the
special
fund
created
in
section
23
403.19
plus
any
outstanding
indebtedness
of
the
municipality
24
that
is
subject
to
the
debt
limitation
of
Article
XI,
section
25
3,
of
the
Constitution
of
the
State
of
Iowa
and
that
does
not
26
qualify
for
payment
from
the
special
fund
created
in
section
27
403.19
exceeds
an
amount
equal
to
five
percent
of
the
value
of
28
the
taxable
property
within
the
municipality.
29
Sec.
3.
Section
403.12,
subsection
1,
paragraph
f,
Code
30
2014,
is
amended
to
read
as
follows:
31
f.
Cause
Subject
to
the
limitation
in
section
403.5,
32
subsection
2,
paragraph
“b”
,
subparagraph
(1),
cause
public
33
buildings
and
public
facilities,
including
parks,
playgrounds,
34
and
recreational,
community,
educational,
water,
sewer
or
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drainage
facilities,
or
any
other
works
which
it
is
otherwise
1
empowered
to
undertake
to
be
furnished;
2
Sec.
4.
NEW
SECTION
.
403.18A
Urban
renewal
area
and
3
division
of
revenue
limitations.
4
1.
Each
municipality
having
an
urban
renewal
area
in
5
existence
on
the
effective
date
of
this
Act
that
is
subject
6
to
a
division
of
revenue
under
section
403.19
that
is
not
7
limited
in
duration
under
either
section
403.17,
subsection
8
10,
or
section
403.22,
subsection
5,
shall
be
subject
to
the
9
assessment
roll
limitation
in
subsection
2,
as
modified
under
10
subsection
3,
if
applicable.
11
2.
a.
For
each
such
urban
renewal
area
described
in
12
subsection
1,
the
urban
renewal
area,
including
all
applicable
13
urban
renewal
plans,
projects,
and
ordinances
providing
14
for
a
division
of
revenue,
shall
continue
in
effect
under
15
this
chapter,
until
such
time
that
the
urban
renewal
area
16
is
dissolved
by
the
municipality
or
until
the
urban
renewal
17
area
terminates
under
the
conditions
of
this
section.
The
18
municipality
may
continue
to
incur
or
issue
additional
costs
19
or
indebtedness
for
such
urban
renewal
area,
including
loans,
20
advances,
and
bonds,
that
qualify
for
payment
from
the
special
21
fund
created
in
section
403.19
on
or
after
the
effective
date
22
of
this
Act
and
until
dissolution
or
termination
of
the
urban
23
renewal
area.
24
b.
Except
as
otherwise
provided
in
subsection
3,
and
25
notwithstanding
any
provision
of
this
chapter
to
the
contrary,
26
for
fiscal
years
beginning
on
or
after
July
1,
2015,
when
27
calculating
a
division
of
revenue
for
an
urban
renewal
area
28
described
in
subsection
1,
and
for
which
the
difference
between
29
the
year
of
the
assessment
roll
referred
to
in
section
403.19,
30
subsection
1,
and
the
year
of
the
assessment
roll
used
to
31
calculate
the
total
amount
of
property
taxes
under
section
32
403.19
for
the
fiscal
year
in
which
the
taxes
are
due
and
33
payable,
exceeds
twenty
years,
the
year
of
the
assessment
34
roll
referred
to
in
section
403.19,
subsection
1,
shall
be
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adjusted
by
increasing
the
year
of
the
assessment
roll
by
two
1
assessment
years.
Following
the
initial
adjustment
under
this
2
paragraph,
the
year
of
the
assessment
roll
used
to
calculate
3
the
amount
of
taxes
referred
to
in
section
403.19,
subsection
4
1,
shall
be
further
increased
in
each
subsequent
fiscal
year
5
by
two
assessment
years
until
the
assessment
roll
used
to
6
calculate
the
amount
of
taxes
referred
to
in
section
403.19,
7
subsection
1,
is
later
in
time
than
the
year
of
the
assessment
8
roll
used
to
calculate
the
total
amount
of
property
taxes
under
9
section
403.19
for
the
fiscal
year
in
which
the
taxes
are
due
10
and
payable,
at
which
time
the
urban
renewal
area,
including
11
all
applicable
urban
renewal
plans,
projects,
and
ordinances
12
providing
for
a
division
of
revenue,
shall
terminate
and
be
of
13
no
further
force
and
effect.
14
3.
a.
For
an
urban
renewal
area
identified
in
subsection
15
1,
following
the
first
fiscal
year
for
which
the
difference
16
between
the
year
of
the
assessment
roll
used
to
calculate
the
17
amount
of
taxes
referred
to
in
section
403.19,
subsection
1,
18
and
the
year
of
the
assessment
roll
used
to
calculate
the
total
19
amount
of
property
taxes
subject
to
division
under
section
20
403.19
for
the
fiscal
year
in
which
taxes
are
due
and
payable,
21
following
an
adjustment
under
subsection
2
of
this
section,
is
22
less
than
twenty
years,
but
before
the
difference
between
the
23
years
of
the
assessment
rolls,
as
adjusted
under
subsection
24
2,
is
less
than
fifteen
years,
if
the
governing
bodies
of
all
25
affected
taxing
entities
irrevocably
authorize,
by
resolution,
26
the
municipality
to
modify
the
year
of
the
assessment
roll
used
27
to
calculate
the
amount
of
taxes
referred
to
in
section
403.19,
28
subsection
1,
the
municipality
may
modify
the
year
of
the
29
applicable
assessment
roll
in
the
manner
provided
in
paragraph
30
“b”
.
31
b.
If
authorized
by
resolution
of
all
affected
taxing
32
entities
under
paragraph
“a”
,
the
year
of
the
assessment
roll
33
used
to
calculate
the
amount
of
taxes
referred
to
in
section
34
403.19,
subsection
1,
shall
be
the
assessment
roll
used
to
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calculate
the
amount
of
taxes
referred
to
in
section
403.19,
1
subsection
1,
for
the
fiscal
year
in
which
the
last
affected
2
taxing
entity
adopted
the
resolution.
The
assessment
roll
3
authorized
to
be
used
under
this
subsection
shall
be
used
to
4
calculate
the
amount
of
taxes
referred
to
in
section
403.19,
5
subsection
1,
for
each
subsequent
fiscal
year
following
the
6
fiscal
year
in
which
the
last
affected
taxing
entity
adopted
7
the
resolution
until
such
time
that
the
urban
renewal
area
is
8
dissolved
or
until
such
time
that
the
urban
renewal
area
is
9
terminated
under
this
section,
whichever
is
earlier.
An
urban
10
renewal
area
authorized
for
modification
under
this
subsection,
11
including
all
applicable
urban
renewal
plans,
projects,
12
and
ordinances
providing
for
a
division
of
revenue,
shall
13
terminate
and
be
of
no
further
force
and
effect
on
the
date
for
14
termination
that
would,
but
for
operation
of
this
subsection,
15
be
required
under
subsection
2.
16
4.
The
department
of
management
shall
adopt
rules
necessary
17
to
implement
and
administer
this
section.
18
Sec.
5.
Section
403.19,
Code
2014,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
3A.
Except
as
provided
in
section
403.22,
21
an
ordinance
providing
for
a
division
of
revenue
under
this
22
section
that
is
adopted
on
or
after
the
effective
date
of
23
this
Act,
including
an
ordinance
providing
for
a
division
24
of
revenue
for
an
economic
development
area
under
section
25
403.17,
subsection
10,
shall
be
limited
to
twenty
years
from
26
the
calendar
year
following
the
calendar
year
in
which
the
27
municipality
first
certifies
to
the
county
auditor
the
amount
28
of
any
loans,
advances,
indebtedness,
or
bonds
that
qualify
for
29
payment
from
the
division
of
revenue
provided
in
this
section.
30
The
urban
renewal
area,
including
all
applicable
urban
renewal
31
plans,
projects,
and
ordinances,
shall
terminate
and
be
of
32
no
further
force
and
effect
following
the
twenty-year
period
33
provided
in
this
subsection.
34
Sec.
6.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
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immediate
importance,
takes
effect
upon
enactment.
1
EXPLANATION
2
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
3
the
explanation’s
substance
by
the
members
of
the
general
assembly.
4
This
bill
relates
to
Iowa’s
urban
renewal
law.
5
The
bill
provides
that
urban
renewal
plans
and
urban
renewal
6
projects
approved
on
or
after
the
effective
date
of
the
bill
7
shall
not
include
the
use
of
revenue
resulting
from
a
division
8
of
taxes
for
a
public
building,
including
but
not
limited
to
a
9
police
station,
fire
station,
administration
building,
swimming
10
pool,
hospital,
library,
recreational
building,
city
hall,
or
11
other
public
building
that
is
exempt
from
taxation,
including
12
the
grounds
of,
and
the
erection,
equipment,
remodeling,
or
13
reconstruction
of,
and
additions
or
extensions
to,
such
a
14
building.
15
The
bill
strikes
provisions
of
Code
section
403.9
relating
16
to
whether
the
bonds
issued
under
that
Code
section
constitute
17
indebtedness
for
purposes
of
constitutional
and
statutory
18
debt
limitations.
The
bill
also
provides
that
a
municipality
19
shall
not
incur
indebtedness
under
Code
chapter
403
or
under
20
another
provision
of
law
that
qualifies
for
payment
from
21
the
municipality’s
special
fund
created
under
Code
section
22
403.19,
with
some
exceptions,
if
the
sum
of
the
municipality’s
23
outstanding
urban
renewal
indebtedness
plus
any
outstanding
24
indebtedness
of
the
municipality
that
is
subject
to
the
debt
25
limitation
in
Article
XI,
section
3,
of
the
Iowa
Constitution
26
and
not
payable
from
the
municipality’s
special
fund
exceeds
an
27
amount
equal
to
5
percent
of
the
value
of
the
taxable
property
28
within
the
municipality.
29
New
Code
section
403.18A
provides
that
each
municipality
30
having
an
urban
renewal
area
in
existence
on
the
effective
31
date
of
the
bill
that
is
subject
to
a
division
of
revenue
32
that
is
not
limited
in
duration
under
either
Code
section
33
403.17,
subsection
10
(20
years)
or
Code
section
403.22,
34
subsection
5
(10
years)
shall
be
subject
to
the
limitation
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provided
for
in
the
bill.
Under
the
bill,
when
calculating
1
a
division
of
revenue
for
such
an
urban
renewal
area
for
2
a
fiscal
year
beginning
on
or
after
July
1,
2015,
and
for
3
which
the
difference
between
the
year
of
the
assessment
roll
4
referred
to
in
Code
section
403.19,
subsection
1,
and
the
year
5
of
the
assessment
roll
used
to
calculate
the
total
amount
of
6
property
taxes
under
Code
section
403.19
for
the
fiscal
year
7
in
which
the
taxes
are
due
and
payable,
exceeds
20
years,
8
the
year
of
the
assessment
roll
referred
to
in
Code
section
9
403.19,
subsection
1,
shall
be
adjusted
by
increasing
the
year
10
of
the
assessment
roll
by
two
assessment
years.
Following
11
this
initial
adjustment,
the
year
of
the
assessment
roll
12
used
to
calculate
the
amount
of
taxes
referred
to
in
Code
13
section
403.19,
subsection
1,
shall
be
further
increased
in
14
each
subsequent
fiscal
year
by
two
assessment
years
until
the
15
assessment
roll
to
calculate
the
amount
of
taxes
referred
to
in
16
Code
section
403.19,
subsection
1,
is
later
in
time
than
the
17
year
of
the
assessment
roll
used
to
calculate
the
total
amount
18
of
property
taxes
under
Code
section
403.19
for
the
fiscal
year
19
in
which
the
taxes
are
due
and
payable,
at
which
time
the
urban
20
renewal
area
including
all
applicable
urban
renewal
plans,
21
projects,
and
ordinances
providing
for
a
division
of
revenue
22
shall
terminate
and
be
of
no
further
force
and
effect.
23
For
those
urban
renewal
areas
identified
in
the
bill
that
24
are
subject
to
a
division
of
revenue
that
is
not
limited
in
25
duration
under
current
law,
following
the
fiscal
year
for
which
26
the
difference
between
the
year
of
the
assessment
roll
used
27
to
calculate
the
amount
of
taxes
referred
to
in
Code
section
28
403.19,
subsection
1,
and
the
year
of
the
assessment
roll
29
used
to
calculate
the
total
amount
of
property
taxes
subject
30
to
division
under
Code
section
403.19
for
the
fiscal
year
in
31
which
taxes
are
due
and
payable,
following
an
adjustment
under
32
the
bill,
is
less
than
20
years,
but
before
the
difference
33
between
the
years
of
the
assessment
rolls,
as
adjusted
under
34
the
bill,
is
less
than
15
years,
if
the
governing
bodies
of
all
35
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affected
taxing
entities
irrevocably
authorize,
by
resolution,
1
the
municipality
to
modify
the
year
of
the
assessment
roll
used
2
to
calculate
the
amount
of
taxes
referred
to
in
Code
section
3
403.19,
subsection
1,
the
municipality
may
modify
the
year
of
4
the
applicable
assessment
roll
to
be
the
assessment
roll
used
5
to
calculate
the
amount
of
taxes
referred
to
in
Code
section
6
403.19,
subsection
1,
for
the
fiscal
year
in
which
the
last
7
affected
taxing
entity
adopted
the
resolution.
That
assessment
8
roll
shall
then
be
used
for
each
subsequent
fiscal
year
9
following
the
fiscal
year
in
which
the
last
affected
taxing
10
entity
adopted
the
resolution
until
such
time
that
the
urban
11
renewal
area
is
dissolved
or
until
such
time
that
the
urban
12
renewal
area
is
terminated
under
the
provisions
of
the
bill,
13
whichever
is
earlier.
14
The
bill
provides
that
except
for
certain
divisions
of
15
revenue
authorized
for
certain
housing
and
residential
16
development
under
Code
section
403.22,
an
ordinance
providing
17
for
a
division
of
revenue
under
Code
section
403.19
that
is
18
adopted
on
or
after
the
effective
date
of
the
bill
shall
be
19
limited
to
20
years
from
the
calendar
year
following
the
20
calendar
year
in
which
the
municipality
first
certifies
to
the
21
county
auditor
the
amount
of
any
loans,
advances,
indebtedness,
22
or
bonds
which
qualify
for
payment
from
the
division
of
revenue
23
provided
in
Code
section
403.19.
Under
the
bill,
the
urban
24
renewal
area,
including
all
applicable
urban
renewal
plans,
25
projects,
and
ordinances
shall
terminate
and
be
of
no
further
26
force
and
effect
following
the
20-year
period
provided
in
the
27
bill.
28
The
bill
takes
effect
upon
enactment.
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