House
File
647
-
Introduced
HOUSE
FILE
647
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
238)
A
BILL
FOR
An
Act
relating
to
Iowa’s
urban
renewal
law
by
establishing
1
restrictions
on
the
issuance
of
certain
bonds
and
other
2
indebtedness
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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647
Section
1.
Section
403.9,
subsection
2,
Code
2013,
is
1
amended
to
read
as
follows:
2
2.
a.
Bonds
issued
under
this
section
shall
not
constitute
3
an
indebtedness
within
the
meaning
of
any
constitutional
or
4
statutory
debt
limitation
or
restriction,
and
shall
not
be
5
subject
to
the
provisions
of
any
other
law
or
charter
relating
6
to
the
authorization,
issuance
or
sale
of
bonds.
Bonds
issued
7
under
the
provisions
of
this
chapter
are
declared
to
be
issued
8
for
an
essential
public
and
governmental
purpose
and,
together
9
with
interest
thereon
and
income
therefrom,
shall
be
exempted
10
from
all
taxes.
11
b.
A
municipality
shall
not
issue
bonds
or
incur
other
12
indebtedness
under
this
chapter
or
under
another
provision
13
of
law
that
qualifies
for
payment
as
described
in
subsection
14
1,
except
for
refunding
or
refinancing
of
bonds
or
other
15
indebtedness
that
does
not
result
in
an
increase
in
the
16
municipality’s
total
outstanding
indebtedness
payable
as
17
described
in
subsection
1,
if
the
municipality’s
outstanding
18
indebtedness
payable
as
described
in
subsection
1
exceeds
an
19
amount
equal
to
the
population
of
the
municipality’s
area
of
20
operation,
according
to
the
most
recent
federal
decennial
21
census,
times
eight
thousand
dollars.
22
Sec.
2.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
23
immediate
importance,
takes
effect
upon
enactment.
24
EXPLANATION
25
This
bill
relates
to
Iowa’s
urban
renewal
law.
26
The
bill
strikes
provisions
of
Code
section
403.9
relating
27
to
whether
the
bonds
issued
under
that
Code
section
constitute
28
indebtedness
for
purposes
of
constitutional
and
statutory
29
debt
limitations.
The
bill
also
provides
that
a
municipality
30
shall
not
issue
bonds
or
incur
other
indebtedness
under
Code
31
chapter
403
or
under
another
provision
of
law
that
qualifies
32
for
payment
from
a
division
of
revenue,
except
for
refunding
or
33
refinancing
of
bonds
or
other
indebtedness
that
does
not
result
34
in
an
increase
in
the
municipality’s
total
outstanding
urban
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647
renewal
indebtedness,
if
the
municipality’s
outstanding
urban
1
renewal
indebtedness
exceeds
an
amount
equal
to
the
population
2
of
the
municipality’s
area
of
operation,
according
to
the
most
3
recent
federal
decennial
census,
times
$8,000.
4
The
bill
takes
effect
upon
enactment.
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