SF 2069 (LSB 5329XS (3) 85)

SENATE FILE 2069

BY  MATHIS

A BILL FOR

An Act relating to county financing of certain projects by modifying provisions relating to authorization procedures for certain county projects and establishing a county threshold committee.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 331.301, subsection 10, paragraph e, subparagraph (1), subparagraph division (a), Code 2014, is amended to read as follows:
   (a)  The board must follow substantially the authorization procedures of section 331.443 to authorize a lease or lease-purchase contract for personal property which is payable from the general fund. The board must follow substantially the authorization procedures of section 331.443 to authorize a lease or lease-purchase contract for real property which is payable from the general fund if the principal amount of the lease-purchase contract does not exceed the following limits:
   (i)  Four hundred thousand One million dollars in a county having a population of twenty-five thousand or less.
   (ii)  Five hundred thousand Two million dollars in a county having a population of more than twenty-five thousand but not more than fifty thousand.
   (iii)  Six hundred thousand Three million dollars in a county having a population of more than fifty thousand but not more than one hundred thousand.
   (iv)  Eight hundred thousand Four million dollars in a county having a population of more than one hundred thousand but not more than two hundred thousand.
   (v)  One Five million dollars in a county having a population of more than two hundred thousand.
    Sec. 2.  Section 331.441, subsection 2, paragraph b, subparagraph (5), Code 2014, is amended to read as follows:
   (5)  Public buildings, including the site or grounds of, and the erection, equipment, remodeling, or reconstruction of, and additions or extensions to the buildings, and including the provision and maintenance of juvenile detention or shelter care facilities, when the cost principal amount of the bonds does not exceed the following limits:
   (a)  Six hundred thousand One million dollars in a county having a population of twenty-five thousand or less.
   (b)  Seven hundred fifty thousand Two million dollars in a county having a population of more than twenty-five thousand but not more than fifty thousand.
   (c)  Nine hundred thousand Three million dollars in a county having a population of more than fifty thousand but not more than one hundred thousand.
   (d)  One Four million two hundred thousand dollars in a county having a population of more than one hundred thousand but not more than two hundred thousand.
   (e)  One Five million five hundred thousand dollars in a county having a population of more than two hundred thousand.
    Sec. 3.  Section 331.441, subsection 2, paragraph c, subparagraph (9), Code 2014, is amended to read as follows:
   (9)  Public buildings, including the site or grounds of, the erection, equipment, remodeling, or reconstruction of, and additions or extensions to the buildings, and including the provision and maintenance of juvenile detention or shelter care facilities, when the cost principal amount of the bonds exceeds the limits stated in subsection 2, paragraph “b”, subparagraph (5).
    Sec. 4.  NEW SECTION.  331.441A  County threshold committee —— adjustments —— notice.
   1.  The director of the department of management shall appoint a county threshold committee. The committee shall consist of seven members, three of whom shall be representatives of counties, three of whom shall be representatives of private sector contractor organizations, and with the remaining member being the director of the department of management or the director’s designee, who shall serve as chairperson of the committee. A vacancy in the membership of the committee shall be filled by the director.
   2.  The committee shall review the thresholds applicable to county lease and lease-purchase contracts under section 331.301, subsection 10, paragraph “e”, subparagraph (1), subparagraph division (a), and to county projects defined as an essential county purpose under section 331.441, subsection 2, paragraph “b”, subparagraph (5), or a general county purpose under section 331.441, subsection 2, paragraph “c”, subparagraph (9). The committee shall review price adjustments for all types of such contracts and projects based on changes in the construction price index from the preceding year. Upon completion of the review, the committee may make adjustments in the applicable thresholds for types of contracts and projects based on the price adjustments. However, a threshold shall not be adjusted to an amount that is less than the threshold applicable to a county on July 1, 2014, as provided in section 331.301 or section 331.441. An adjusted threshold shall take effect as provided in subsection 3, and shall remain in effect until a new adjusted threshold is established and becomes effective as provided in this section.
   3.  The committee shall meet to conduct the review and make the adjustments described in this section on or before August 1 of every other year, or of every year if determined necessary by the committee. By September 1 of each year in which a committee makes adjustments in the thresholds, the director shall cause an advisory notice to be published in the Iowa administrative bulletin and in a newspaper of general circulation in this state, stating the adjusted thresholds to be in effect on January 1 of the following year, as established by the committee under this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to county finance by modifying provisions relating to the authorization procedures for county projects by raising certain limitation amounts and by establishing a county threshold committee.
   The bill increases the threshold amounts that determine whether a project can be undertaken using the procedures for essential county purpose bonds when the project involves a lease contract or a lease-purchase contract. The bill increases the threshold amounts in the following manner: For counties with a population of 25,000 or less, the threshold amount is increased from $400,000 to $1 million; for counties with a population of more than 25,000 but not more than 50,000, the threshold amount is increased from $500,000 to $2 million; for counties with a population of more than 50,000 but not more than 100,000, the threshold amount is increased from $600,000 to $3 million; for counties with a population of more than 100,000 but not more than 200,000, the threshold amount is increased from $800,000 to $4 million; and for counties with a population of more than 200,000, the threshold amount is increased from $1 million to $5 million.
   The bill modifies the definition of “essential county purpose” to specify that public building projects meet the definition of “essential county purpose” if the principal amount of the bonds does not exceed certain threshold amounts based upon the population of the county. Current law specifies that a public building project meets the definition of an “essential county purpose” if the costs of the project do not exceed certain threshold amounts based upon the population of the county.
   The bill increases the threshold amounts that determine whether a public building project is an essential county purpose and whether the board of supervisors may follow the authorization procedures for essential county purpose bonds under Code section 331.443.
   The board may follow the authorization procedures for essential county purpose bonds when the principal amount of the bonds does not exceed the following limits: (1) $1 million in a county having a population of 25,000 or less; (2) $2 million in a county having a population of more than 25,000 but not more than 50,000; (3) $3 million in a county having a population of more than 50,000 but not more than 100,000; (4) $4 million in a county having a population of more than 100,000 but not more than 200,000; (5) $5 million in a county having a population of more than 200,000.
   The bill modifies the definition of “general county purpose” to specify that public building projects meet the definition of “general county purpose” if the principal amount of the bonds exceeds certain threshold amounts based upon the population of the county. Current law specifies that a public building project meets the definition of “general county purpose” if the costs of the project exceed certain threshold amounts based upon the population of the county.
   Generally, an essential county purpose bond issuance does not require approval of the voters and a general county purpose bond issuance requires approval of the voters.
   The bill directs the director of the department of management to appoint a county threshold committee. The committee consists of seven members, three of whom shall be representatives of counties, three of whom shall be representatives of private sector contractor organizations, and the remaining member being the director of the department of management or the director’s designee, who shall serve as chairperson of the committee.
   The committee is required to review the thresholds applicable to county lease and lease-purchase contracts under Code section 331.301 and to county projects defined as essential purposes or general county purposes under Code section 331.441. The committee is required to review price adjustments for all types of such contracts and projects based on changes in the construction price index from the preceding year. Upon completion of the review, the committee may make adjustments in the applicable thresholds based on the price adjustments. However, a threshold may not be adjusted to an amount that is less than the threshold applicable to a county on July 1, 2014. The committee meets on or before August 1 of every other year, or of every year if determined necessary by the committee. By September 1 of each year in which a committee makes adjustments in the thresholds, the director of the department of management shall cause an advisory notice to be published in the Iowa administrative bulletin and in a newspaper of general circulation in this state, stating the adjusted thresholds to be in effect on January 1 of the following year, as established by the committee.