House File 359 - Introduced HOUSE FILE 359 BY MOMMSEN A BILL FOR An Act requiring the governing body of a county or city to 1 approve certain gifts and purchases of real property by 2 entities of the county or city. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1961YH (9) 87 aw/rj

H.F. 359 Section 1. Section 174.15, subsection 2, Code 2017, is 1 amended to read as follows: 2 2. Notwithstanding section 364.7, subsection 3 1, paragraph 3 “c” , a city may dispose of real property by gift to a fair. 4 Sec. 2. Section 331.301, Code 2017, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 17. a. The board of supervisors shall by 7 resolution independently do the following: 8 (1) Approve the acceptance of a gift of real property before 9 a county entity, supported by direct appropriations by the 10 board of supervisors, may accept such a gift. 11 (2) Approve a contract for the purchase of real property 12 before a county entity may enter into a contract for the 13 purchase of the real property, if the contract price for the 14 real property is less than fifty percent of the fair market 15 value for the real property. 16 b. Notwithstanding paragraph “a” , a county entity may accept 17 real property offered as a gift or enter into a contract for 18 the purchase of real property if the gift or contract also 19 includes a gift of money in an amount that is equal to at least 20 fifty percent of the fair market value of the real property. 21 Moneys accepted to satisfy the requirements of this paragraph 22 shall be placed in trust by the board of supervisors, and the 23 interest on the moneys placed in trust shall be allocated to 24 the county entity for the continued maintenance of the real 25 property. 26 c. For the purposes of this subsection, “county entity” 27 means a board, commission, agency, division, or other entity 28 of the county supported by direct appropriations by the board 29 of supervisors. 30 Sec. 3. Section 364.7, Code 2017, is amended to read as 31 follows: 32 364.7 Disposal and acceptance of real property. 33 1. A city may shall not dispose of an interest in real 34 property by sale, lease for a term of more than three years, or 35 -1- LSB 1961YH (9) 87 aw/rj 1/ 3

H.F. 359 gift, except in accordance with the following procedure: 1 1. a. The council shall set forth its proposal in a 2 resolution and shall publish notice as provided in section 3 362.3 , of the resolution and of a date, time and place of a 4 public hearing on the proposal. 5 2. b. After the public hearing, the council may make a 6 final determination on the proposal by resolution. 7 3. c. A city may shall not dispose of real property by gift 8 except to a governmental body for a public purpose. 9 2. a. The city council shall by resolution independently 10 do the following: 11 (1) Approve the acceptance of a gift of real property before 12 a city entity, may accept such a gift. 13 (2) Approve a contract for the purchase of real property 14 before a city entity may enter into a contract for the purchase 15 of the real property, if the contract price for the real 16 property is less than fifty percent of the fair market value 17 for the real property. 18 b. Notwithstanding paragraph “a” , a city entity may accept 19 real property offered as a gift or enter into a contract for 20 the purchase of real property if the gift or contract also 21 includes a gift of money in an amount that is equal to at least 22 fifty percent of the fair market value of the real property. 23 Moneys accepted to satisfy the requirements of this paragraph 24 shall be placed in trust by the city council, and the interest 25 on the moneys placed in trust shall be allocated to the city 26 entity for the continued maintenance of the real property. 27 c. For the purposes of this subsection, “city entity” means 28 a board, commission, agency, division, or other entity of the 29 city supported by direct appropriations by the city council. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill relates to gifts of real property offered to, and 34 contracts for the purchase of real property entered into by, 35 -2- LSB 1961YH (9) 87 aw/rj 2/ 3

H.F. 359 county and city entities. 1 The bill requires the governing body of a county (board of 2 supervisors) or city (city council) to approve the acceptance 3 of gifts of real property by resolution before acceptance of 4 such a gift by an entity of the county or city. The bill also 5 requires such approval before a county or city entity may 6 enter into a contact for the purchase of real property, if the 7 contract price for the real property is less than 50 percent of 8 the fair market value for that property. 9 The bill provides that a county or city entity may accept 10 gifts of real property or purchase real property if the gift 11 or contract also includes a gift of money equal to at least 50 12 percent of the fair market value of the real property. The 13 bill requires that any such gift of money be placed in trust by 14 the appropriate governing body and requires that the interest 15 on the funds placed in trust be allocated to the county or city 16 entity for the continued maintenance of the real property. 17 -3- LSB 1961YH (9) 87 aw/rj 3/ 3