Senate
File
2207
-
Introduced
SENATE
FILE
2207
BY
CHAPMAN
A
BILL
FOR
An
Act
restricting
certain
city
utility
boards
from
approving
1
payment
of
bonus
compensation
to
specified
officers
of
the
2
city
utility,
and
including
effective
date
and
retroactive
3
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
388.5,
Code
2016,
is
amended
to
read
as
1
follows:
2
388.5
Control
of
tax
revenues.
3
1.
A
utility
board
shall
control
tax
revenues
allocated
to
4
the
city
utility,
city
utilities,
or
combined
utility
system
it
5
administers
and
all
moneys
derived
from
the
operation
of
the
6
city
utility,
city
utilities,
or
combined
utility
system,
the
7
sale
of
utility
property,
interest
on
investments,
or
from
any
8
other
source
related
to
the
city
utility,
city
utilities,
or
9
combined
utility
system.
10
2.
All
city
utility
moneys
received
must
be
held
in
a
11
separate
utility
fund,
with
a
separate
account
or
accounts
12
for
each
city
utility
or
combined
utility
system.
If
a
board
13
administers
a
municipal
utility
or
combined
utility
system,
14
moneys
may
be
paid
out
of
that
utility
account
only
at
the
15
direction
of
the
board.
16
3.
a.
The
utility
board
of
a
city
utility,
city
utilities,
17
or
combined
utility
system
that
provides
water
service
shall
18
not
in
any
fiscal
year
approve
the
payment
of
bonuses,
in
any
19
form,
totaling
more
than
one
hundred
dollars
to
the
chief
20
executive,
executive
director,
general
manager,
or
equivalent
21
officer
of
the
city
utility,
city
utilities,
or
combined
22
utility
system
if
the
board
has,
pursuant
to
section
384.84,
23
increased
water
utility
rates
by
more
than
one-fourth
of
24
one
percent
in
that
fiscal
year
or
in
any
of
the
previous
25
five
fiscal
years.
All
contract
provisions,
promises,
26
and
agreements
made
by
the
board
of
any
city
utility,
city
27
utilities,
or
combined
utility
system
to
or
with
any
such
28
officer
that
is
inconsistent
with
or
contrary
to
the
provisions
29
of
this
subsection
shall
be
null
and
void.
30
b.
This
subsection
applies
only
to
the
utility
boards
of
31
any
city
utility,
city
utilities,
or
combined
utility
system
32
that
provides
water
service
to
a
city
having
more
than
one
33
hundred
seventy-five
thousand
population,
as
shown
by
the
most
34
recent
federal
decennial
census.
35
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Sec.
2.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
1
immediate
importance,
takes
effect
upon
enactment.
2
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
3
retroactively
to
fiscal
years
commencing
on
or
after
July
1,
4
2015.
5
EXPLANATION
6
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
7
the
explanation’s
substance
by
the
members
of
the
general
assembly.
8
This
bill
restricts
certain
city
utility
boards
from
9
approving
payment
of
bonuses
to
a
specified
officer
of
the
city
10
utility.
11
Under
the
bill,
the
utility
board
of
a
city
utility,
city
12
utilities,
or
combined
utility
system
that
provides
water
13
service
to
a
city
with
a
population
greater
than
175,000
is
14
prohibited
from
approving
payment
of
bonuses,
in
any
form,
15
exceeding
$100
in
any
one
fiscal
year
to
the
utility’s
chief
16
executive,
executive
director,
general
manager,
or
equivalent
17
officer,
if
the
board
has
increased
water
utility
rates
by
more
18
than
0.25
percent
in
that
fiscal
year
or
in
any
of
the
previous
19
five
fiscal
years.
The
bill
provides
that
all
contract
20
provisions,
promises,
and
agreements
made
by
a
utility
board
21
to
or
with
any
such
officer
approving
such
a
bonus
payment
are
22
null
and
void.
23
The
bill
takes
effect
upon
enactment
and
applies
24
retroactively
to
fiscal
years
commencing
on
or
after
July
1,
25
2015.
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