H.F. 2324 Section 1. Section 468.28, Code 2020, is amended to read as 1 follows: 2 468.28 Dismissal on remonstrance objection . 3 1. If, at At or before the time set for final hearing 4 as to the establishment of a proposed levee, drainage, or 5 improvement district, except subdrainage district, there shall 6 have been an objection may be filed with the county auditor, 7 or auditors, in case the district extends into more than one 8 county, a remonstrance signed by a majority of the landowners 9 in the district, and these remonstrants must owning in the 10 aggregate own seventy percent or more than fifty percent of 11 the lands land to be assessed for benefits or taxed for said 12 improvements , remonstrating . The landowners may object to the 13 establishment of a proposed levee, drainage, or improvement 14 district, by doing any of the following: 15 a. Filing a remonstrance against the establishment of said 16 levee, drainage, or improvement district, setting forth the 17 reasons therefor, the for the objection. The remonstrance must 18 be signed by all landowners making the objection. 19 b. Conducting a vote on the matter, if authorized by the 20 board or boards. The auditor or auditors must mail a ballot 21 on the question to landowners in the same manner as provided 22 in section 468.14. A landowner shall return the ballot in the 23 same manner as filing a remonstrance as provided in paragraph 24 “a” . The auditor or auditors shall only count the votes of 25 landowners who answer the question on the ballots returned to 26 the auditor. 27 2. If a remonstrance is filed or a majority of landowners 28 voting disapprove the proposed district, the board or boards 29 as the case may be, shall assess to the petitioners and 30 their sureties or apportion the costs among them as the board 31 or boards may deem just or as said parties may agree upon. 32 When all such costs have been paid, the board or boards of 33 supervisors shall dismiss said proceedings and cause to be 34 filed with the county auditor all surveys, plats, reports, and 35 -1- LSB 5699YH (6) 88 da/ns 1/ 12

H.F. 2324 records in relation to the proposed district. 1 Sec. 2. Section 468.119, subsection 4, Code 2020, is amended 2 to read as follows: 3 4. The right of remonstrance objection , as provided under 4 in section 468.28 , does not apply to the owners of lands being 5 involuntarily annexed to an established district. 6 Sec. 3. Section 468.126, subsection 1, Code 2020, is amended 7 to read as follows: 8 1. When any levee or drainage district has been established 9 and the improvement constructed, the improvement shall be at 10 all times under the supervision of the board of supervisors 11 except as otherwise provided for control and management by a 12 board of trustees and the board shall keep the improvement in 13 repair as provided in this section . 14 a. The board at any time on its own motion, without notice, 15 may or acting upon a petition of one or more landowners in 16 the district, may order done whatever is necessary to restore 17 or maintain a drainage or levee improvement in its original 18 efficiency or capacity, and for that purpose may remove silt 19 and debris, repair any damaged structures, remove weeds and 20 other vegetable growth, and whatever else may be needed to 21 restore or maintain such efficiency or capacity or to prolong 22 its useful life. The board shall determine whether a proposed 23 project meets the requirements to be classified as a repair or 24 whether it should be classified as an improvement. The board 25 shall determine the difference between a major and minor repair 26 based on a dollar amount for making the repair as determined 27 by the board. 28 b. If the board considers a petition for a major repair, 29 the petition must include the signatures of at least thirty 30 percent of the landowners in the district. There shall be 31 filed with the petition a bond in an amount fixed and with 32 sureties approved by the auditor, conditioned for the payment 33 of all costs and expenses incurred in the proceedings if the 34 petition is not approved. 35 -2- LSB 5699YH (6) 88 da/ns 2/ 12

H.F. 2324 b. c. The board may at any time obtain order an engineer’s 1 report be prepared and submitted to the board regarding a 2 repair, only if the board makes an initial determination that 3 the estimated cost of the repair could exceed three hundred 4 thousand dollars. The board may adjust the determination at 5 any time. The board shall not order a report until it approves 6 a preliminary estimate of the scope and cost of the repair 7 prepared by an engineer to be appointed by the board. If 8 an engineer’s report is ordered, the report shall describe 9 the most feasible means of repairing a drainage or levee 10 improvement and the probable cost of making the repair. If 11 the engineer advises, or the board otherwise concludes that 12 permanent restoration of a damaged structure is not feasible at 13 the time, the board may order temporary construction it deems 14 necessary to the continued functioning of the improvement. If 15 in maintaining and repairing tile lines the board finds from 16 an engineer’s report it is more economical to construct a new 17 line than to repair the existing line, the new line may be 18 considered to be a repair. 19 c. d. If the estimated cost of the repair does not 20 exceed The board may order a report from the soil and water 21 conservation district conservationist in lieu of the engineer’s 22 report. The board may waive the report requirement if a prior 23 report concerning the repair is less than ten years old. 24 e. (1) The board shall hold a hearing regarding a repair 25 under any of the following circumstances: 26 (a) The scope of the repair exceeds the engineer’s 27 preliminary estimate as provided in paragraph “c” by more than 28 fifteen percent. The engineer or soil and water conservation 29 district conservationist preparing the report shall pay all 30 expenses related to conducting the hearing, unless the enlarged 31 scope was ordered by the board. 32 (b) The estimated cost of the repair exceeds fifty thousand 33 dollars , the board may order the work done without conducting a 34 hearing on the matter. Otherwise, the . The estimated cost of 35 -3- LSB 5699YH (6) 88 da/ns 3/ 12

H.F. 2324 the repair shall be based on the board’s determination, unless 1 a report is ordered pursuant to paragraph “c” . In that case, 2 the estimated cost shall be based on the preliminary estimate 3 or, if available, the report. 4 (2) The board shall set a date and time for a the hearing 5 and provide notice of the hearing to landowners in the district 6 by publication in the same manner as provided in section 7 468.15 . However, if the estimated cost of the repair exceeds 8 the adjusted competitive bid threshold, the board shall provide 9 notice to the landowners pursuant to sections 468.14 through 10 468.18 . The board shall not divide a proposed repair into 11 separate programs in order to avoid the notice and hearing 12 requirements of this paragraph. At the hearing, the board 13 shall hear objections regarding the feasibility of making the 14 proposed repair. 15 d. If a hearing is required under paragraph “c” , the board 16 shall order an engineer’s report or a report from the soil 17 and water conservation district conservationist regarding the 18 matter to be presented at the hearing. The board may waive the 19 report requirement if a prior report on the repair exists and 20 that report is less than ten years old. At the hearing, the 21 board shall hear objections to the feasibility of making the 22 proposed repair. 23 e. f. Following a hearing, if required in paragraph “c” 24 “e” , the board shall determine whether the repair is necessary 25 or desirable, and feasible. 26 f. g. Any interested party has the right of appeal from 27 such orders in the manner provided in this subchapter, parts 1 28 through 5 . 29 g. h. The right of remonstrance objection as provided in 30 subsection 4 does not apply to a minor repair as provided in 31 this section subsection . In the case of a major repair, an 32 objection shall be made in the same manner as provided in that 33 subsection. 34 Sec. 4. Section 468.126, subsection 4, Code 2020, is amended 35 -4- LSB 5699YH (6) 88 da/ns 4/ 12

H.F. 2324 to read as follows: 1 4. a. For the purpose of this subsection , an “improvement” 2 in a drainage or levee district in which any ditch, tile drain, 3 or other facility has previously been constructed is a project 4 intended to expand, enlarge, or otherwise increase the capacity 5 of any existing ditch, drain, or other facility above that for 6 which it was designed. 7 b. When the board determines that an improvement is 8 necessary or desirable, and feasible, the The board shall 9 determine whether a proposed project meets the requirements 10 to be classified as an improvement or repair. The board, 11 at any time, on its own motion, or upon a petition of one 12 or more landowners in the district, may order an improvement 13 be constructed. The board shall appoint an engineer to 14 make surveys as seem appropriate to determine the nature and 15 extent of the improvement, and to file a report showing what 16 improvement is recommended and its estimated cost, which report 17 may be amended before final action. 18 c. The board shall determine the difference between a major 19 and minor improvement based on a dollar amount for making the 20 improvement as determined by the board. 21 d. If the board considers a petition for a major 22 improvement, the petition must include the signatures of at 23 least thirty percent of the landowners in the district. There 24 shall be filed with the petition a bond in an amount fixed and 25 with sureties approved by the auditor, conditioned for the 26 payment of all costs and expenses incurred in the proceedings 27 if the petition is not approved or the proceeding has been 28 dismissed due to the filing of a remonstrance. 29 e. The board shall order an engineer’s report be prepared 30 and submitted to the board regarding the improvement, only if 31 the board makes an initial determination that the estimated 32 cost of the improvement could exceed three hundred thousand 33 dollars. The board may adjust the determination at any 34 time. The board shall not order a report until it approves a 35 -5- LSB 5699YH (6) 88 da/ns 5/ 12

H.F. 2324 preliminary estimate of the scope and cost of the improvement 1 as prepared by the engineer to be appointed by the board. 2 f. The board shall hold a hearing regarding the proposed 3 construction of an improvement under any of the following 4 circumstances: 5 (1) The enlarged scope of the improvement exceeds the 6 engineer’s preliminary estimate as provided in paragraph “e” . 7 The engineer appointed by the board shall pay all expenses 8 related to conducting the hearing, unless the enlarged scope 9 was ordered by the board. 10 c. (2) If the The estimated cost of the improvement does 11 not exceed exceeds fifty thousand dollars , the board may order 12 the work done without conducting a hearing on the matter. 13 Otherwise, the . The estimated cost of the improvement shall be 14 based on the board’s determination, unless a report is ordered 15 pursuant to paragraph “e” . In that case, the estimated cost 16 shall be based on the preliminary estimate or, if available, 17 the report. 18 g. The board shall set a date and time for a the hearing 19 on whether to construct the proposed improvement and whether 20 there shall be a reclassification of benefits for the cost of 21 the proposed improvement. 22 (1) (a) The board shall provide notice to landowners in 23 the district by publication in the same manner as provided 24 in section 468.15 . However, if the estimated cost of the 25 improvement exceeds the adjusted competitive bid threshold, 26 the board shall provide notice to the landowners pursuant to 27 sections 468.14 through 468.18 . 28 (b) Notwithstanding subparagraph division (a), and in lieu 29 of publishing the notice, the board may mail a copy of the 30 notice to each address where a landowner within the district 31 resides by first class mail if the cost of mailing is less 32 than publication of the notice. The mailing shall be made 33 during the time the notice would otherwise be required to be 34 published. 35 -6- LSB 5699YH (6) 88 da/ns 6/ 12

H.F. 2324 (2) The board shall not divide proposed improvements into 1 separate programs in order to avoid compliance with this 2 paragraph “c” subsection . 3 d. h. At the a hearing for the approval of the construction 4 of an improvement , if required in paragraph “c” “f” , the board 5 shall hear objections to the feasibility of the proposed 6 improvements and arguments for or against a reclassification 7 presented by or for any taxpayer of the district. Following 8 the hearing, the board shall order that the improvement it 9 deems necessary or desirable and feasible be made and shall 10 also determine whether there should be a reclassification of 11 benefits for the cost of the improvement. If it is determined 12 that a reclassification of benefits should be made, the board 13 shall proceed as provided in section 468.38 . 14 e. i. (1) If the estimated cost of the improvement exceeds 15 the adjusted competitive bid threshold, or the original cost 16 of the district plus the cost of subsequent improvements in 17 the district, whichever amount is greater, a majority of the 18 landowners, owning in the aggregate more than seventy fifty 19 percent of the total land in the district, may file object to 20 the proposed improvement by doing any of the following: 21 (a) Filing a written remonstrance against the proposed 22 improvement, at or before the date set for hearing on the 23 proposed improvement as provided in paragraph “c” “f” , with the 24 county auditor, or auditors in case the district extends into 25 more than one county. 26 (b) Conducting a vote on the matter, if authorized by the 27 board or boards. The auditor or auditors must mail a ballot 28 on the question to landowners in the same manner as provided 29 in section 468.14. A landowner shall return the ballot 30 in the same manner as filing a remonstrance as provided in 31 subparagraph division (a). The auditor or auditors shall only 32 count the votes of landowners who answer the question on the 33 ballots returned to the auditor. 34 (2) If a remonstrance is filed or a majority of landowners 35 -7- LSB 5699YH (6) 88 da/ns 7/ 12

H.F. 2324 voting disapprove the proposed improvement , the board shall 1 discontinue and dismiss all further proceedings on the proposed 2 improvements and charge the costs incurred to date for the 3 proposed improvements to the district. 4 j. Any interested party may appeal from such orders in 5 the manner provided in this subchapter, parts 1 through 5 . 6 However, this section does not affect the procedures of section 7 468.132 covering the common outlet. 8 Sec. 5. Section 468.184, subsection 3, Code 2020, is amended 9 by striking the subsection and inserting in lieu thereof the 10 following: 11 3. At or before the time set for said hearing as to such 12 classification or reclassification, an objection may be made by 13 a majority of the landowners owning more than fifty percent of 14 the total assessed value of the lands plus land improvements in 15 said district as shown by the taxing records in said county or 16 counties in which said district is located. The landowners may 17 object to the classification or reclassification by doing any 18 of the following: 19 a. Filing a remonstrance with the auditor, or auditors 20 in case the district extends into more than one county. The 21 remonstrance must be signed by all landowners making the 22 objection. 23 b. Conducting a vote on the matter, if authorized by the 24 board, or boards in case the district extends into more than 25 one county. The auditor or auditors must mail a ballot on 26 the question to landowners in the same manner as provided in 27 section 468.14. A landowner shall return the ballot in the 28 same manner as filing a remonstrance as provided in paragraph 29 “a” . The auditor or auditors shall only count the votes of 30 landowners who answer the question on the ballots returned to 31 the auditor. 32 Sec. 6. Section 468.184, Code 2020, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 3A. a. If a remonstrance is filed or 35 -8- LSB 5699YH (6) 88 da/ns 8/ 12

H.F. 2324 a majority of landowners voting disapprove the proposed 1 improvement, the board or boards shall abandon the alternative 2 method of classification or reclassification herein authorized. 3 b. The board or boards may then proceed to classify the 4 lands in said levee district as authorized under sections 5 468.38 through 468.44 or may proceed to reclassify the same 6 as authorized under section 468.65 unless the remonstrance or 7 vote objects to any reclassification. In that case, the board 8 shall not reclassify the lands within the district under the 9 provision of this section nor shall the same be reclassified 10 under the provisions of section 468.65. 11 Sec. 7. Section 468.258, subsection 4, Code 2020, is amended 12 by striking the subsection and inserting in lieu thereof the 13 following: 14 4. At or before the time set for the hearing, an objection 15 may be made to the dissolution of the contained district, 16 or to the acceptance of that district’s improvements and 17 rights-of-way by the overlying district, by the owners of land 18 and land improvements in either district aggregating more 19 than fifty percent of the total assessed value of the land in 20 that district as shown by the taxing records in the county or 21 counties in which that district is located. The landowners may 22 object to the classification or reclassification by doing any 23 of the following: 24 a. Filing a remonstrance with the county auditor, or 25 auditors if either the contained or overlying district 26 extends into more than one county, or with the board of either 27 district. The remonstrance must be signed by all landowners 28 making the objection. 29 b. Conducting a vote on the matter, if authorized by the 30 board, or boards in case the district extends into more than 31 one county. The auditor or auditors must mail a ballot on 32 the question to landowners in the same manner as provided in 33 section 468.14. A landowner shall return the ballot in the 34 same manner as filing a remonstrance as provided in paragraph 35 -9- LSB 5699YH (6) 88 da/ns 9/ 12

H.F. 2324 “a” . The auditor or auditors shall only count the votes of 1 landowners who answer the question on the ballots returned to 2 the auditor. 3 Sec. 8. Section 468.258, Code 2020, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 5. If a remonstrance is filed or a majority 6 of landowners voting disapprove the proposed improvement, the 7 board to which the objection is made shall abandon its proposed 8 action. 9 Sec. 9. Section 468.534, Code 2020, is amended to read as 10 follows: 11 468.534 Remonstrance. 12 Remonstrances signed An objection may be made by the same 13 persons who are qualified to sign the petition may , which 14 objection must be filed in the office of the auditor and if . 15 If the same persons petition and remonstrate object they shall 16 be counted on the remonstrance only for the objection . Such 17 remonstrances shall The objection shall be made in the same 18 manner as provided in section 468.28. However, the objection 19 must be filed with the auditor not less than five days before 20 the time set for hearing. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 GENERAL. This bill amends Code chapter 468 by providing 25 for repairs made and improvements constructed to a drainage or 26 levee district (district) as ordered by a board managing the 27 district (board). It also provides for remonstrances filed 28 with the board that seek to dismiss an action to be taken by the 29 board. 30 OBJECTION. The bill provides that a landowner may object to 31 a proceeding affecting a landowner’s rights in a proposed or 32 established district. First, it provides that a majority of 33 landowners owning more than 50 percent rather than 70 percent 34 of the total land in the district may file a remonstrance. 35 -10- LSB 5699YH (6) 88 da/ns 10/ 12

H.F. 2324 Second, it provides that the board may allow the question to 1 be placed on a ballot mailed to the landowners and filed with 2 the auditor who counts the votes of landowners who answer the 3 question on the ballots returned to the auditor. 4 REPORT REGARDING A REPAIR OR IMPROVEMENT —— INCREASE IN 5 THRESHOLD AMOUNT. The bill increases the threshold amount 6 from $50,000 to $300,000 before a board may order a report 7 from a civil or drainage engineer (engineer) or soil and 8 water conservation district conservationist (conservationist) 9 regarding a proposed repair (Code section 468.126(1)) or a 10 report from an engineer regarding a proposed improvement (Code 11 section 468.126(4)). The board may determine whether a project 12 meets the requirements for either a repair or improvement. 13 The board must distinguish between major and minor repairs or 14 improvements. 15 PETITIONS REGARDING A REPAIR OR IMPROVEMENT. The bill 16 provides that a board may consider a petition for a repair 17 or improvement submitted by one or more landowners in the 18 district. If a petition seeks a major repair or improvement, 19 the petition must include the signatures of at least 30 percent 20 of the district’s landowners. If a remonstrance against a 21 proposed improvement succeeds, the petitioners are liable for 22 costs incurred by the board in taking action on the petition. 23 HEARING REGARDING A REPAIR OR IMPROVEMENT. The board must 24 conduct a hearing regarding the repair or improvement if 25 the scope of the repair exceeds the scope of a preliminary 26 estimate prepared by the engineer or conservationist by more 27 than 15 percent. The costs of the hearing are to be paid by 28 the engineer or conservationist, unless the enlarged scope was 29 ordered by the board. The board must still conduct a hearing 30 if the estimated cost of the repair or improvement exceeds 31 $50,000 but that amount is based on the expected cost as 32 provided in the board’s initial or adjusted determination or as 33 provided in the preliminary or reported estimate. 34 BACKGROUND. Generally, there are two types of projects 35 -11- LSB 5699YH (6) 88 da/ns 11/ 12

H.F. 2324 authorized under Code chapter 468, a repair which refers to 1 restoring a facility to its original design or efficiency 2 and an improvement which enhances or enlarges the district’s 3 facility. Before a board managing a drainage district may 4 order an engineer’s report or a report from a conservationist 5 regarding a proposed repair or improvement, the estimated 6 cost of the repair or improvement must exceed $50,000, the 7 board must conduct a hearing of landowners, and the report 8 must be presented at the hearing. There are several types 9 of boards that may have jurisdiction to decide whether or 10 not to order a repair or improvement, including a board of 11 supervisors, a joint board of supervisors, or an elected board 12 of trustees. A landowner is provided a right of remonstrance 13 under a number of circumstances, including when a new drainage 14 district is proposed to be established (Code section 468.28), 15 an improvement is proposed (Code section 468.126), land in 16 the district is classified or reclassified for purposes of 17 determining the benefit received from the board’s action and 18 therefore the amount of tax imposed on the land (Code section 19 468.184), and the dissolution of a district (Code section 20 468.258). 21 -12- LSB 5699YH (6) 88 da/ns 12/ 12