House File 575 - Introduced HOUSE FILE 575 BY DEYOE A BILL FOR An Act relating to the annexation of lands by a drainage or 1 levee district, by providing for the payment of costs, and 2 including effective date and applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2133HH (5) 89 da/ns

H.F. 575 DIVISION I 1 DRAINAGE AND LEVEE DISTRICTS 2 TERMINATION OF ANNEXATION AND COSTS 3 Section 1. Section 468.119, Code 2021, is amended by adding 4 the following new subsection: 5 NEW SUBSECTION . 3A. If the district is under the 6 jurisdiction of a county board of supervisors in the case of a 7 petition proposing that lands be annexed, the board may require 8 that a bond be filed by the petitioners in the same manner as 9 provided in section 468.9 conditioned for the payment of all 10 costs of the proposed annexation, including but not limited to 11 engineering costs, costs of any report, and any planned repair 12 or improvement costs. If the board of supervisors terminates 13 the proposed annexation, the costs of the proposed annexation 14 shall be payable only from the bond filed by the petitioners. 15 DIVISION II 16 DRAINAGE AND LEVEE DISTRICTS 17 TERMINATION OF ANNEXATION AND COSTS 18 SPECIAL CIRCUMSTANCES 19 Sec. 2. DRAINAGE AND LEVEE DISTRICTS —— TERMINATION OF 20 ANNEXATION. If a county board of supervisors acting as the 21 governing body of a drainage or levee district under chapter 22 468 considered the proposed annexation of lands at a meeting 23 held on October 29, 2019, and the board did not approve the 24 proposed annexation of certain of those lands then or on August 25 24, 2020, when the board approved the proposed annexation of 26 other lands, all of the following shall apply: 27 1. The proposed annexation of the unapproved lands is 28 terminated. 29 2. a. All unpaid costs, and any interest generated from 30 those costs, of the proposed annexation of the unapproved 31 lands together with any planned improvements or repairs to 32 the unapproved lands assessed against the drainage or levee 33 district or the district’s landowners, including but not 34 limited to engineering costs and the costs of any report or 35 -1- LSB 2133HH (5) 89 da/ns 1/ 3

H.F. 575 plans, shall instead be paid from the general fund of the 1 county in which the district is located. 2 b. Any costs charged to the drainage or levee district, or 3 any special assessment charged to a landowner of the district 4 arising from the proposed annexation of the unapproved lands 5 together with any planned improvements or repairs to the 6 unapproved lands, and any interest generated from those costs, 7 charged to the district or a landowner of the district, is 8 void. 9 c. Any payment made by the drainage or levee district, or 10 any special assessment paid by a landowner of the district 11 for costs of the proposed annexation of the unapproved lands 12 together with any planned improvements or repairs, and any 13 interest generated from those costs, shall be refunded to the 14 district or landowner from moneys in the county’s general fund. 15 Sec. 3. EFFECTIVE DATE. This division of this Act, being 16 deemed of immediate importance, takes effect upon enactment. 17 Sec. 4. RETROACTIVE APPLICABILITY. This division of this 18 Act applies retroactively to August 24, 2020. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 BACKGROUND. Under Code chapter 468, a drainage or levee 23 district is established by landowners to provide facilities 24 for draining excess water in a watershed area to improve 25 the land for a number of purposes, including farming (Code 26 section 468.1). The district is governed by a county board 27 of supervisors, joint boards of supervisors in the case of an 28 intercounty district, or a board of trustees in the case of the 29 landowners’ election of that form of management (Code section 30 468.3(3)). If a board determines that lands outside a district 31 are benefiting from improvements completed inside the district, 32 the board may voluntarily or involuntarily annex those lands 33 and assess landowners joining the district an amount necessary 34 to maintain the district. Generally, annexation is initiated 35 -2- LSB 2133HH (5) 89 da/ns 2/ 3

H.F. 575 by landowner petition to the board or the board acting on its 1 own (Code sections 468.119 through 468.121). 2 GENERAL PAYMENT OF COSTS FOR A TERMINATED ANNEXATION. This 3 bill provides that if the district is governed by a board of 4 supervisors, the board may require the petitioners to file a 5 bond for a sum adequate to cover the costs of the proposed 6 annexation in the same manner as if they were petitioning for 7 the establishment of a district (Code section 468.9). The 8 costs of the proposed annexation include engineering costs, 9 costs of any report, and any planned repair or improvement 10 costs. 11 SPECIAL CIRCUMSTANCE. The bill also provides for a special 12 circumstance in which the board of supervisors acting as the 13 governing body of a district considered a proposed annexation 14 of lands on October 29, 2019, and August 24, 2020, but did 15 not act to annex those lands. The bill provides that the 16 annexation of the unapproved lands is terminated, and any 17 costs and interest generated from those costs arising from the 18 proposed annexation together with any planned improvements or 19 repairs to the unapproved lands are obligations of the county 20 rather than either the district or the district’s landowners. 21 This provision of the bill takes effect upon enactment and 22 applies retroactively to August 24, 2020. 23 -3- LSB 2133HH (5) 89 da/ns 3/ 3