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 TLSB 2537HV (1) 85 md/sc
H.F. 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 35 -1- LSB 2537HV (1) 85 md/sc 1/ 2
H.F. 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. 5 -2- LSB 2537HV (1) 85 md/sc 2/ 2