House Study Bill 91 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON HIGHFILL) A BILL FOR An Act relating to the designation of certain county and city 1 activities as essential purposes or general purposes for 2 bonding purposes. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2292YC (3) 87 md/nh
H.F. _____ Section 1. Section 28M.3, unnumbered paragraph 1, Code 1 2017, is amended to read as follows: 2 A regional transit district shall have all the rights, 3 powers, and duties of a county enterprise pursuant to sections 4 331.462 through 331.469 as they relate to the purpose for 5 which the regional transit district is created, including 6 the authority to issue revenue bonds for the establishment, 7 construction, reconstruction, repair, equipping, remodeling, 8 extension, maintenance, and operation of works, vehicles, and 9 facilities of a regional transit district. In addition, a 10 regional transit district, with the approval of the board of 11 supervisors, may issue general obligation bonds as an essential 12 a general county purpose pursuant to chapter 331, division IV, 13 part 3 , for the establishment, construction, reconstruction, 14 repair, equipping, remodeling, extension, maintenance, and 15 operation of works, vehicles, and facilities of a regional 16 transit district. Such general obligation bonds are payable 17 from the property tax levy authorized in section 28M.5 . 18 Sec. 2. Section 331.441, subsection 2, paragraph b, 19 subparagraphs (13) and (15), Code 2017, are amended by striking 20 the subparagraphs. 21 Sec. 3. Section 331.441, subsection 2, paragraph c, Code 22 2017, is amended by adding the following new subparagraphs: 23 NEW SUBPARAGRAPH . (011) The acquisition, pursuant to a 24 chapter 28E agreement, of a city convention center or veterans 25 memorial auditorium, including the renovation, remodeling, 26 reconstruction, expansion, improvement, or equipping of such a 27 center or auditorium, provided that debt service funds shall 28 not be derived from the division of taxes under section 403.19. 29 NEW SUBPARAGRAPH . (0011) The establishment, construction, 30 reconstruction, repair, equipping, remodeling, extension, 31 maintenance, and operation of works, vehicles, and facilities 32 of a regional transit district. 33 Sec. 4. Section 384.24, subsection 3, paragraphs b, c, 34 f, g, h, i, n, and p, Code 2017, are amended by striking the 35 -1- LSB 2292YC (3) 87 md/nh 1/ 5
H.F. _____ paragraphs. 1 Sec. 5. Section 384.24, subsection 4, Code 2017, is amended 2 by adding the following new paragraphs: 3 NEW PARAGRAPH . 0h. The reconstruction, extension, and 4 improvement of an airport owned or operated by the city, an 5 agency of the city, or a multimember governmental body of which 6 the city is a participating member. 7 NEW PARAGRAPH . 0i. The acquisition, construction, 8 improvement, and installation of street lighting fixtures, 9 connections, and facilities. 10 NEW PARAGRAPH . 00i. The construction, reconstruction, and 11 repair of sidewalks and pedestrian underpasses and overpasses, 12 and the acquisition of real estate needed for such purposes. 13 NEW PARAGRAPH . 000i. The settlement, adjustment, renewal, 14 or extension of any part or all of the legal indebtedness of 15 a city, whether evidenced by bonds, warrants, or judgments, 16 or the funding or refunding of the same, whether or not such 17 indebtedness was created for a purpose for which general 18 obligation bonds might have been issued in the original 19 instance. 20 NEW PARAGRAPH . 0000i. The undertaking of any project 21 jointly or in cooperation with any other governmental body 22 which, if undertaken by the city alone, would be for an 23 essential corporate purpose, including the joint purchase, 24 acquisition, construction, ownership, or control of any real or 25 personal property. 26 NEW PARAGRAPH . 00000i. The acquisition, construction, 27 reconstruction, improvement, and extension of works and 28 facilities useful for the control and elimination of any 29 and all sources of air, water, and noise pollution, and the 30 acquisition of real estate needed for such purposes. 31 NEW PARAGRAPH . 000000i. The acquisition, construction, 32 reconstruction, and improvement of all waterways, and real and 33 personal property, useful for the protection or reclamation 34 of property situated within the corporate limits of cities 35 -2- LSB 2292YC (3) 87 md/nh 2/ 5
H.F. _____ from floods or high waters, and for the protection of property 1 in cities from the effects of flood waters, including the 2 deepening, widening, alteration, change, diversion, or other 3 improvement of watercourses, within or without the city limits, 4 the construction of levees, embankments, structures, impounding 5 reservoirs, or conduits, and the establishment, improvement, 6 and widening of streets, avenues, boulevards, and alleys across 7 and adjacent to the project, as well as the development and 8 beautification of the banks and other areas adjacent to flood 9 control improvements. 10 NEW PARAGRAPH . 0000000i. The rehabilitation and improvement 11 of area television translator systems already owned. 12 Sec. 6. Section 384.27, subsection 2, Code 2017, is amended 13 to read as follows: 14 2. General obligation funding or refunding bonds issued 15 for the purposes specified in section 384.24, subsection 3 16 4 , paragraph “f” “000i” , may be exchanged for the evidences 17 of the legal indebtedness being funded or refunded, or such 18 funding or refunding bonds may be sold in the manner prescribed 19 by chapter 75 and the proceeds applied to the payment of such 20 indebtedness. Funding or refunding bonds may bear interest 21 at the same rate as, or at a higher or lower rate or rates of 22 interest than the indebtedness being funded or refunded. 23 Sec. 7. Section 411.38, subsection 1, paragraph b, 24 subparagraph (2), Code 2017, is amended to read as follows: 25 (2) In the alternative, a city may treat the city’s 26 accrued unfunded liability for the terminated system as legal 27 indebtedness to the statewide system for the purposes of 28 section 384.24, subsection 3 4 , paragraph “f” “000i” . 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill relates to the designation of certain county and 33 city activities as essential purposes or general purposes. 34 The bill strikes the portion of the definition of “essential 35 -3- LSB 2292YC (3) 87 md/nh 3/ 5
H.F. _____ county purpose” relating to the acquisition, pursuant to an 1 agreement under Code chapter 28E, of a city convention center 2 or veterans memorial auditorium and the portion concerning 3 certain activities related to a regional transit district. The 4 bill also adds those stricken provisions to the definition of 5 “general county purpose”. Under Code chapter 331, a county 6 board of supervisors may approve the issuance of general 7 obligation bonds to carry out an essential county purpose 8 without approval by voters at an election, while the issuance 9 of general obligation bonds to carry out a general county 10 purpose generally requires approval by voters at election. 11 The bill strikes the portions of the definition of 12 “essential corporate purpose” relating to the following 13 activities and adds them to the definition of “general 14 corporate purpose”: (1) reconstruction, extension, and 15 improvement of an airport owned or operated by the city, 16 an agency of the city, or a multimember governmental 17 body of which the city is a participating member; (2) 18 acquisition, construction, improvement, and installation of 19 street lighting fixtures, connections, and facilities; (3) 20 construction, reconstruction, and repair of sidewalks and 21 pedestrian underpasses and overpasses, and the acquisition 22 of real estate needed for such purposes; (4) settlement, 23 adjustment, renewal, or extension of any part or all of the 24 legal indebtedness of a city, whether evidenced by bonds, 25 warrants, or judgments, or the funding or refunding of the 26 same, whether or not such indebtedness was created for a 27 purpose for which general obligation bonds might have been 28 issued in the original instance; (5) undertaking of any 29 project jointly or in cooperation with any other governmental 30 body which, if undertaken by the city alone, would be for an 31 essential corporate purpose; (6) acquisition, construction, 32 reconstruction, improvement, and extension of works and 33 facilities useful for the control and elimination of any 34 and all sources of air, water, and noise pollution, and the 35 -4- LSB 2292YC (3) 87 md/nh 4/ 5
H.F. _____ acquisition of real estate needed for such purposes; (7) 1 acquisition, construction, reconstruction, and improvement 2 of all waterways, and real and personal property, useful for 3 the protection or reclamation of property situated within the 4 corporate limits of cities from floods or high waters, and 5 for the protection of property in cities from the effects of 6 flood waters; and (8) rehabilitation and improvement of area 7 television translator systems already owned. 8 Under Code chapter 384, a city may approve the issuance of 9 general obligation bonds to carry out an essential corporate 10 purpose without approval by voters at an election, while the 11 issuance of general obligation bonds to carry out a general 12 corporate purpose generally requires approval by voters at 13 election. 14 The bill makes corresponding changes to other provisions 15 of law related to activities of cities and counties and by 16 operation of law to activities of other local government 17 entities. 18 -5- LSB 2292YC (3) 87 md/nh 5/ 5