S.F. _____ H.F. _____ Section 1. Section 331.301, subsection 10, paragraph e, 1 subparagraph (1), subparagraph divisions (a) and (b), Code 2 2013, are amended to read as follows: 3 (a) The board must follow substantially the authorization 4 procedures of section 331.443 to authorize a lease or 5 lease-purchase contract for personal property which is payable 6 from the general fund. The board must follow substantially 7 the authorization procedures of section 331.443 to authorize 8 a lease or lease-purchase contract for real property which is 9 payable from the general fund if the principal amount of the 10 lease-purchase contract does not exceed the following limits: 11 (i) Four Six hundred thousand dollars in a county having a 12 population of twenty-five thousand or less. 13 (ii) Five seven hundred fifty thousand dollars in a county 14 having a population of more than twenty-five thousand but not 15 more than fifty thousand. 16 (iii) Six nine hundred thousand dollars in a county having 17 a population of more than fifty thousand but not more than one 18 hundred thousand. 19 (iv) Eight One million two hundred thousand dollars in a 20 county having a population of more than one hundred thousand 21 but not more than two hundred thousand. 22 (v) One million five hundred thousand dollars in a county 23 having a population of more than two hundred thousand. 24 (b) (i) However, if the principal amount of a lease or 25 lease-purchase contract pursuant to this subparagraph (1) is 26 less than twenty-five thousand dollars, the board may authorize 27 the lease or lease-purchase contract without following the 28 authorization procedures of section 331.443 . 29 (ii) If the board determines that at least fifty percent of 30 the real property to be leased or lease-purchased is to be used 31 or occupied by the judicial branch as referenced in section 32 602.1102, the board may follow the authorization procedures of 33 section 331.443 even if the principal amount of the lease or 34 lease-purchase contract exceeds the limitations in subparagraph 35 -1- LSB 1162XD (2) 85 jm/sc 1/ 4

S.F. _____ H.F. _____ division (a). 1 Sec. 2. Section 331.402, subsection 3, paragraph d, 2 subparagraph (1), Code 2013, is amended to read as follows: 3 (1) (a) The board shall follow substantially the 4 authorization procedures of section 331.443 to authorize a 5 loan agreement for personal property which is payable from 6 the general fund. The board must follow substantially the 7 authorization procedures of section 331.443 to authorize a loan 8 agreement for real property which is payable from the general 9 fund if the principal amount of the loan agreement does not 10 exceed the following limits: 11 (a) (i) Four Six hundred thousand dollars in a county 12 having a population of twenty-five thousand or less. 13 (b) (ii) Five Seven hundred fifty thousand dollars in a 14 county having a population of more than twenty-five thousand 15 but not more than fifty thousand. 16 (c) (iii) Six Nine hundred thousand dollars in a county 17 having a population of more than fifty thousand but not more 18 than one hundred thousand. 19 (d) (iv) Eight One million two hundred thousand dollars in 20 a county having a population of more than one hundred thousand 21 but not more than two hundred thousand. 22 (e) (v) One million five hundred thousand dollars in a 23 county having a population of more than two hundred thousand. 24 (b) If the board determines that at least fifty percent of 25 the real property that is the subject of the loan agreement is 26 to be used or occupied by the judicial branch as referenced 27 in section 602.1102, the board may follow the authorization 28 procedures of section 331.443 even if the principal amount of 29 the loan agreement exceeds the limitations in subparagraph 30 division (a). 31 Sec. 3. Section 331.441, subsection 2, paragraph b, 32 subparagraph (5), Code 2013, is amended to read as follows: 33 (5) (a) Public buildings, including the site or grounds of, 34 and the erection, equipment, remodeling, or reconstruction of, 35 -2- LSB 1162XD (2) 85 jm/sc 2/ 4

S.F. _____ H.F. _____ and additions or extensions to the buildings, and including the 1 provision and maintenance of juvenile detention or shelter care 2 facilities, when the cost principal amount of bonds does not 3 exceed the following limits: 4 (a) (i) Six hundred thousand dollars in a county having a 5 population of twenty-five thousand or less. 6 (b) (ii) Seven hundred fifty thousand dollars in a county 7 having a population of more than twenty-five thousand but not 8 more than fifty thousand. 9 (c) (iii) Nine hundred thousand dollars in a county having 10 a population of more than fifty thousand but not more than one 11 hundred thousand. 12 (d) (iv) One million two hundred thousand dollars in a 13 county having a population of more than one hundred thousand 14 but not more than two hundred thousand. 15 (e) (v) One million five hundred thousand dollars in a 16 county having a population of more than two hundred thousand. 17 (b) If the board determines that at least fifty percent of 18 the public building will be used or occupied by the judicial 19 branch as referenced in section 602.1102, the board may 20 follow the authorization procedures of section 331.443 even 21 if the principal amount of bonds exceeds the limitations in 22 subparagraph division (a). 23 EXPLANATION 24 This bill relates to the authorization procedures for county 25 projects involving real property by raising certain limitation 26 amounts and by making an exception for projects involving 27 property to be used by the judicial branch. 28 The bill provides that if a county project involves a real 29 property lease contract, lease-purchase contract, or loan 30 agreement, and at least 50 percent of the real property is 31 to be used or occupied by the judicial branch, the county, 32 when entering into the contract or agreement, is authorized to 33 follow the procedures for issuance of essential county purpose 34 bonds. 35 -3- LSB 1162XD (2) 85 jm/sc 3/ 4

S.F. _____ H.F. _____ The bill also amends the definition of “essential county 1 purpose”, relating to issuance of bonds for public buildings, 2 to provide that the dollar limitations on the principal amount 3 of the bonds does not apply if at least 50 percent of the public 4 building will be used or occupied by the judicial branch. 5 Generally, an essential county purpose does not require 6 approval of the voters. 7 The bill increases the threshold amounts that determine 8 whether a project can be undertaken using the procedures for 9 essential county purpose bonds when the project involves a 10 lease contract, lease-purchase contract, or loan agreement. 11 The bill increases the threshold amounts in the following 12 manner: For counties with a population of 25,000 or less, the 13 threshold amount is increased from $400,000 to $600,000; for 14 counties with a population of more than 25,000 but not more 15 than 50,000, the threshold amount is increased from $500,000 to 16 $750,000; for counties with a population of more than 50,000 17 but not more than 100,000, the threshold amount is increased 18 from $600,000 to $900,000; for counties with a population of 19 more than 100,000 but not more than 200,000, the threshold 20 amount is increased from $800,000 to $1.2 million; and for 21 counties with a population of more than 200,000, the threshold 22 amount is increased from $1 million to $1.5 million. 23 -4- LSB 1162XD (2) 85 jm/sc 4/ 4