H.F. 49 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 1035YH (5) 85 da/sc 1/ 5

H.F. 49 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 1035YH (5) 85 da/sc 2/ 5

H.F. 49 468.537 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 468.517) and the board of 23 trustees conducts subsequent elections (Code section 468.521). 24 Where a district contains 20,000 acres or more, the board of 25 supervisors, or joint board of supervisors, may divide the 26 district into three election districts. A trustee residing in 27 each election district is elected by landowners for the entire 28 district (Code section 468.504). Ordinarily, trustees serve 29 for staggered three-year terms (Code section 468.518) except 30 for trustees in districts having a pumping station who may 31 serve concurrently (Code section 468.519). 32 BACKGROUND —— TRANSFER OF MUTUAL TERRITORY FROM ONE DRAINAGE 33 OR LEVEE DISTRICT TO ANOTHER. Two or more drainage or levee 34 districts may share mutual territory. The district which 35 -3- LSB 1035YH (5) 85 da/sc 3/ 5

H.F. 49 has jurisdiction of all such territory is referred to as an 1 overlying district and each district which has jurisdiction 2 of a portion of that territory is referred to as a contained 3 district. The governing body of a contained district or 4 overlying district may be a board of supervisors, joint 5 board of supervisors, or board of trustees. After receiving 6 a dissolution petition, the governing body of a contained 7 district must conduct an election to dissolve the district and 8 the governing body of the overlying district may conduct a 9 hearing and accept improvements and rights-of-way surrendered 10 by the board of the contained district, or in the alternative, 11 conduct an election of land users (Code chapter 468, subchapter 12 I, part 6). 13 BILL —— SCOPE. The bill establishes a new process for the 14 election of trustees of a new district formed when an overlying 15 district accepts all improvements and rights-of-way surrendered 16 by a board of supervisors or board of trustees of a contained 17 district (Code sections 468.256 through 468.259), if the new 18 district includes at least 35,000 acres with a pumping station, 19 regardless of whether the new district is located in more than 20 one county. 21 BILL —— PETITION AND ELECTION TO ESTABLISH A BOARD OF 22 TRUSTEE FORM OF GOVERNANCE NOT REQUIRED. The bill provides 23 that the current Code procedures under Code chapter 468, 24 subchapter I, part 6, requiring petition and election by 25 landowners to establish a trustee form of governance under 26 Code sections 468.500 through 468.502 do not apply. Instead, 27 the board of trustees currently serving for the overlying 28 district is responsible for conducting the election of 29 trustees to the new district in the same manner as if the 30 board of trustees initially elected under the supervision of 31 a board of supervisors, or joint board of supervisors, would 32 be responsible for conducting the election of trustees to an 33 existing district. 34 BILL —— NEW ELECTION REQUIREMENTS. The bill provides that 35 -4- LSB 1035YH (5) 85 da/sc 4/ 5

H.F. 49 trustees of the overlying district must divide the new drainage 1 or levee district into three election districts in the same 2 manner as a board of supervisors acting pursuant to Code 3 sections 468.504 and 468.505. The individuals elected to the 4 board as trustees must serve staggered terms notwithstanding 5 any special requirements in Code section 568.519. In addition, 6 either the board of trustees of the overlying district or a 7 subsequent board of trustees of the new district may provide 8 for the election of two additional persons to serve at large. 9 BILL —— CHAPTER ORGANIZATION. The bill requires the Code 10 editor to organize Code chapter 468, subchapter III, into new 11 parts in order to enhance the Code’s readability. 12 BILL —— EFFECTIVE DATE. The bill takes effect upon 13 enactment. 14 -5- LSB 1035YH (5) 85 da/sc 5/ 5