HSB 186 (LSB 1769YC (8) 89)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON HEIN)

A BILL FOR

An Act relating to funding emergency medical services by modifying provisions relating to city emergency medical services districts, benefited emergency medical services districts, and optional taxes for emergency medical services.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
EMERGENCY MEDICAL SERVICES DISTRICTS

    Section 1.  Section 357F.8, Code 2021, is amended to read as follows:
   357F.8  Election on proposed levy and candidates for trustees.
   1.  When a preliminary plat has been approved by the board, an election shall be held within the district within sixty days to approve or disapprove the levy of a an initial tax of not more than one dollar per thousand dollars of assessed value on all the taxable property within the district and to choose candidates for the offices of trustees of the district. The ballot shall set out the reason for the tax and the amount needed. The tax shall be set to raise only the amount needed. Notice of the election, including the time and place of holding the election, shall be given as provided in section 357F.4. The vote shall be by ballot which shall state clearly the proposition to be voted upon and any registered voter residing within the district at the time of the election may vote. It is not mandatory for the county commissioner of elections to conduct elections held pursuant to this chapter, but the elections shall be conducted in accordance with chapter 49 where not in conflict with this chapter. Judges shall be appointed to serve without pay by the board from among the registered voters of the district to be in charge of the election. The proposition is approved if sixty percent of those voting on the proposition vote in favor of it.
   2.  a.  If the tax authorized under subsection 1 is insufficient to provide the services authorized under this chapter, the trustees may levy an additional annual tax, at a rate necessary to provide the authorized services, if such authority for an additional tax is approved at election held separately and after the election held under subsection 1.
   b.  By resolution, the trustees may submit to the registered voters of the district the proposition of levying the additional annual tax according to the election procedures under subsection 1.
   c.  (1)  After adoption of the resolution under paragraph “b”, the board of trustees shall coordinate efforts with the local emergency medical services agencies to establish a district advisory council to assist in researching and assessing the service needs of the district and guiding implementation of services in the district within a council structure and in the manner provided in the most recently updated Iowa emergency medical services system standards.
   (2)  The advisory council established under subparagraph (1) shall recommend to the board of trustees an amount of funding to be specified on the ballot for the election held under this subsection 2 and shall annually assess and review the emergency medical services needs of the district and shall include the results of such review and assessment in an annual report filed with the board of trustees. The annual report shall be publicly available upon filing with the board of trustees. The board of trustees shall receive public comment regarding the report at one or more meetings of the board of trustees. Any meeting of the board of trustees at which public comment on the annual report is heard shall be at least fourteen days following the date the annual report is filed with the board of trustees.
   d.  The proposition is adopted if a majority of those voting on the proposition at the election approves it. If the proposition is approved at election, the trustees may impose the additional annual tax beginning with the fiscal year beginning July 1 following the election at which the proposition was approved. The proposition is not affected by a change in the boundaries of the district.
   e.  Discontinuance of the authority to impose an additional tax under this chapter shall be by petition and election. Upon petition of twenty-five percent of the resident eligible electors, the board shall submit to the voters of the district the question of whether to discontinue the authority to impose the additional tax according to the election procedures under subsection 1. If a majority of those voting on the question of discontinuance of the trustees’ authority to impose the tax favors discontinuance, the trustees shall not impose the additional tax for any fiscal year beginning after the election approving the discontinuance, unless imposition is subsequently again authorized at election. Following discontinuance of the authority to impose the additional tax, authority to reimpose the additional tax requires approval in accordance with this subsection.
    Sec. 2.  Section 357F.10, Code 2021, is amended to read as follows:
   357F.10  Trustees’ powers.
   The trustees may purchase, own, rent, or maintain emergency medical services apparatus or equipment within the state or outside the territorial jurisdiction and boundary limits of this state, provide housing for such apparatus and equipment, provide emergency medical service and facilities, and may certify for levy an annual tax taxes as provided in section 357F.8. The trustees may purchase material, employ emergency medical service and other personnel, and may perform all other acts necessary to properly maintain and operate the district. The trustees may contract with any city or county or public or private agency under chapter 28E for the purpose of providing emergency medical services under this chapter. The trustees are allowed necessary expenses in the discharge of their duties, but they shall not receive a salary.
    Sec. 3.  Section 357F.11, Code 2021, is amended to read as follows:
   357F.11  Bonds in anticipation of revenue.
   A district may anticipate the collection of taxes by the levy authorized in this chapter, and to carry out the purposes of this chapter may issue bonds payable in not more than ten equal installments with the rate of interest not exceeding that permitted by chapter 74A. An indebtedness shall not be incurred under this chapter until authorized by an election. The election shall be held and notice given in the same manner as provided in section 357F.8, and the same a sixty percent vote shall be necessary to authorize indebtedness. Both propositions may be submitted to the voters at the same election.
    Sec. 4.  Section 357G.8, Code 2021, is amended to read as follows:
   357G.8  Election on proposed levy and candidates for trustees.
   1.  When a preliminary plat has been approved by the council, an election shall be held within the district within sixty days to approve or disapprove the levy of a an initial tax of not more than one dollar per thousand dollars of assessed value on all the taxable property within the district and to choose candidates for the offices of trustees of the district. The ballot shall set out the reason for the tax and the amount needed. The tax shall be set to raise only the amount needed. Notice of the election, including the time and place of holding the election, shall be given as provided in section 357G.4. The vote shall be by ballot which shall state clearly the proposition to be voted upon and any registered voter residing within the district at the time of the election may vote. It is not mandatory for the county commissioner of elections to conduct elections held pursuant to this chapter, but the elections shall be conducted in accordance with chapter 49 where not in conflict with this chapter. Judges shall be appointed to serve without pay by the council from among the registered voters of the district to be in charge of the election. The proposition is approved if sixty percent of those voting on the proposition vote in favor of it.
   2.  a.  If the tax authorized under subsection 1 is insufficient to provide the services authorized under this chapter, the trustees may levy an additional annual tax, at a rate necessary to provide the authorized services, if such authority for an additional tax is approved at election held separately and after the election held under subsection 1.
   b.  By resolution, the trustees may submit to the registered voters of the district the proposition of levying the additional annual tax according to the election procedures under subsection 1.
   c.  (1)  After adoption of the resolution under paragraph “b”, the board of trustees shall coordinate efforts with the local emergency medical services agencies to establish a district advisory council to assist in researching and assessing the service needs of the district and guiding implementation of services in the district within a council structure and in the manner provided in the most recently updated Iowa emergency medical services system standards.
   (2)  The district advisory council established under subparagraph (1) shall recommend to the board of trustees an amount of funding to be specified on the ballot for the election held under this subsection 2 and shall annually assess and review the emergency medical services needs of the district and shall include the results of such review and assessment in an annual report filed with the board of trustees. The annual report shall be publicly available upon filing with the board of trustees. The board of trustees shall receive public comment regarding the report at one or more meetings of the board of trustees. Any meeting of the board of trustees at which public comment on the annual report is heard shall be at least fourteen days following the date the annual report is filed with the board of trustees.
   d.  The proposition is adopted if a majority of those voting on the proposition at the election approves it. If the proposition is approved at election, the trustees may impose the additional annual tax beginning with the fiscal year beginning July 1 following the election at which the proposition was approved. The proposition is not affected by a change in the boundaries of the district.
   e.  Discontinuance of the authority to impose an additional tax under this chapter shall be by petition and election. Upon petition of twenty-five percent of the resident eligible electors, the board shall submit to the voters of the district the question of whether to discontinue the authority to impose the additional tax according to the election procedures under subsection 1. If a majority of those voting on the question of discontinuance of the trustees’ authority to impose the tax favors discontinuance, the trustees shall not impose the additional tax for any fiscal year beginning after the election approving the discontinuance, unless imposition is subsequently again authorized at election. Following discontinuance of the authority to impose the additional tax, authority to reimpose the additional tax requires approval in accordance with this subsection.
    Sec. 5.  Section 357G.10, Code 2021, is amended to read as follows:
   357G.10  Trustees’ powers.
   The trustees may purchase, own, rent, or maintain emergency medical services apparatus or equipment within the state or outside the territorial jurisdiction and boundary limits of this state, provide housing for such apparatus and equipment, provide emergency medical service and facilities, and may certify for levy an annual tax taxes as provided in section 357G.8. The trustees may purchase material, employ emergency medical service and other personnel, and may perform all other acts necessary to properly maintain and operate the district. The trustees may contract with any other city or county or public or private agency under chapter 28E for the purpose of providing emergency medical services under this chapter. The trustees are allowed necessary expenses in the discharge of their duties, but they shall not receive a salary.
    Sec. 6.  Section 357G.11, Code 2021, is amended to read as follows:
   357G.11  Bonds in anticipation of revenue.
   A district may anticipate the collection of taxes by the levy authorized in this chapter, and to carry out the purposes of this chapter may issue bonds payable in not more than ten equal installments with the rate of interest not exceeding that permitted by chapter 74A. An indebtedness shall not be incurred under this chapter until authorized by an election. The election shall be held and notice given in the same manner as provided in section 357G.8, and the same a sixty percent vote shall be necessary to authorize indebtedness. Both propositions may be submitted to the voters at the same election.
DIVISION II
OPTIONAL TAXES FOR EMERGENCY MEDICAL SERVICES

    Sec. 7.  Section 422D.1, Code 2021, is amended to read as follows:
   422D.1  Authorization —— election —— imposition and repeal —— use of revenues.
   1.  a.  A Upon adoption of a resolution declaring emergency medical services to be an essential county service under subsection 1A, and subject to the limitations of this chapter, a county board of supervisors may offer for voter approval the authorization to impose any of the following taxes or a combination of the following taxes:
   (1)  Local option income surtax.
   (2)  An ad valorem property tax.
   b.  Revenues generated from these taxes shall be used for emergency medical services as provided in section 422D.6.
   1A.  a.  To be effective, the resolution declaring emergency medical services to be an essential service shall be considered and voted on for approval at two meetings of the board prior to the meeting at which the resolution is to be finally approved by a majority of the board by recorded vote, as defined in section 331.101. Notice of the first meeting of the board at which the resolution is considered and voted on shall be published not less than sixty days prior to the date of the meeting in one or more newspapers that meet the requirements of section 618.14. The board shall not suspend or waive the requirements for approval of the resolution or approval of the imposition of a tax under this chapter.
   b.  Each county for which a resolution has been adopted under this subsection shall coordinate efforts with the local emergency medical services agencies to establish a county emergency medical services system advisory council to assist in researching and assessing the service needs of the county and guiding implementation of services in the county within a council structure and in the manner provided in the most recently updated Iowa emergency medical services system standards.
   c.  The county emergency medical services system advisory council established under paragraph “b” shall recommend to the board of supervisors an amount of funding to be specified on the ballot under section 422D.5, and if one or more of the taxes are approved at election, shall annually assess and review the emergency medical services needs of the county, and shall include the results of such review and assessment in an annual report filed with the board of supervisors. The annual report shall be publicly available upon filing with the board of supervisors. The board of supervisors shall receive public comment regarding the report at one or more meetings of the board of supervisors. Any meeting of the board of supervisors at which public comment on the annual report is heard shall be at least fourteen days following the date the annual report is filed with the board of supervisors.
   d.  A resolution declaring emergency medical services to be an essential service shall be deemed void if the proposition to impose the taxes fails at election or if discontinuance of the authority to impose the tax is approved at election under subsection 4.
   2.  a.  The taxes for emergency medical services shall only be imposed after an election at which a majority of those voting on the question of imposing the tax or combination of taxes specified in subsection 1, paragraph “a”, subparagraph (1) or (2), vote in favor of the question. However, the tax or combination of taxes specified in subsection 1 shall not be imposed on property within or on residents of a benefited emergency medical services district under chapter 357F. The question of imposing the tax or combination of the taxes may be submitted at the regular city election, a special election, or the general election. Notice of the question shall be provided by publication at least sixty days before the time of the election and shall identify the tax or combination of taxes and the rate or rates, as applicable. If a majority of those voting on the question approve the imposition of the tax or combination of taxes, the tax or combination of taxes shall may be imposed as follows:
   (1)  A local option income surtax shall may be imposed for tax years beginning on or after January 1 of the fiscal year in which the favorable election was held following the date the ordinance is filed with the director of revenue under section 422D.3, subsection 3.
   (2)  An ad valorem property tax shall may be imposed for the property taxes due and payable in fiscal year years beginning after the fiscal year in which the election was held.
   b.  Before a county imposes an income surtax as specified in subsection 1, paragraph “a”, subparagraph (1), a benefited emergency medical services district in the county shall be dissolved, and the county shall be liable for the outstanding obligations of the benefited district. If the benefited district extends into more than one county, the county imposing the income surtax shall be liable for only that portion of the obligations relating to the portion of the benefited district in the county.
   3.  Revenues received by the county from the taxes imposed under this chapter shall be deposited into the emergency medical services trust fund created pursuant to section 422D.6 and shall be used as provided in that section.
   4.  Any tax or combination of taxes imposed shall be for a maximum period of five years Discontinuance of the authority to impose a tax under this chapter shall be by petition and election.  Upon receipt of a valid petition as provided in section 331.306, the board of supervisors shall direct the county commissioner of elections to submit to the voters of the county the question of whether to discontinue the authority to impose one or more of the taxes under this chapter. If a majority of those voting on the question of discontinuance of the board’s authority to impose the tax favors discontinuance, the board shall not impose the property tax for any fiscal year beginning after the election approving the discontinuance and shall not impose the income surtax for any tax year beginning after the election approving the discontinuance unless imposition is subsequently again authorized at election. Following discontinuance of the authority to impose the taxes under this chapter, authority to reimpose the taxes requires approval in accordance with this section.
    Sec. 8.  Section 422D.3, subsection 1, Code 2021, is amended to read as follows:
   1.  A local income surtax shall may be imposed for tax years beginning on or after January 1 of the fiscal year in which the favorable election was held for tax years beginning on or after January 1 following the date the ordinance is filed with the director of revenue under subsection 3, and is repealed as provided in section 422D.1, subsection 4, as of December 31 for tax years beginning after December 31.
    Sec. 9.  Section 422D.5, Code 2021, is amended to read as follows:
   422D.5  Property tax levy.
   A county may levy an emergency medical services tax at the rate set by the board of supervisors and approved at the election as provided in section 422D.1, on all taxable property in the county for fiscal years beginning with property taxes due and payable in the fiscal year beginning after the fiscal year in which the favorable election was held. The reason for imposing the tax and the amount needed, as determined by the board of supervisors after recommendation of the county emergency medical services system advisory council, shall be set out on the ballot. The rate shall be set so as to raise only the amount needed. The authority to impose the levy is repealed for subsequent fiscal years may be discontinued as provided in section 422D.1, subsection 4.
    Sec. 10.  Section 422D.6, subsection 1, Code 2021, is amended to read as follows:
   1.  A county authorized to impose a tax under this chapter shall establish an emergency medical services trust fund into which revenues received from the taxes imposed shall be deposited. Moneys in the trust fund shall be used for emergency medical services. In addition, moneys in the fund may be used for the purpose of matching federal or state funds for education and training related to emergency medical services.  Moneys remaining in the fund following discontinuance of the authority to impose the taxes as provided in section 422D.1, subsection 4, shall remain in the fund and may be expended for the purposes specified in this section.
    Sec. 11.  IMPLEMENTATION.  This division of this Act shall not affect the imposition and collection of taxes under chapter 422D in effect on July 1, 2021, and such taxes shall continue to be imposed and administered until the period of authority to impose such taxes in effect immediately prior to July 1, 2021, expires.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to funding emergency medical services.
   A benefited emergency medical services district established by a county board of supervisors under Code chapter 357F authorizes the district trustees to levy a tax of not more than $1 per $1,000 of assessed value on all the taxable property within the district. Division I of the bill provides that if the $1 per $1,000 tax levy is insufficient to provide the district’s services, the trustees may levy an additional annual tax, at a rate necessary to provide the authorized services, if such authority is approved at election by a majority of those voting on the proposition at a separate election. In addition, after adoption of the resolution to submit the proposition to the electors, the district must coordinate efforts with the local emergency medical services agencies to establish a district advisory council to recommend an amount of taxes to be raised and included on the ballot and to assist in researching and assessing the service needs of the district and guiding implementation of services. The bill establishes annual emergency medical service assessment and reporting requirements for each district advisory council. Discontinuance of the authority to impose the additional tax under the bill must be by petition and election of the resident eligible electors.
   A city emergency medical services district established by a city council under Code chapter 357G authorizes the district trustees to levy a tax of not more than $1 per $1,000 of assessed value on all the taxable property within the district. Division I of the bill provides that if the $1 per $1,000 tax levy is insufficient to provide the district’s services, the trustees may levy an additional annual tax, at a rate necessary to provide the authorized services, if such authority is approved at election by a majority of those voting on the proposition at a separate election. In addition, after adoption of the resolution to submit the proposition to the electors, the district must coordinate efforts with the local emergency medical services agencies to establish a district advisory council to recommend an amount of taxes to be raised and included on the ballot and to assist in researching and assessing the service needs of the district and guiding implementation of services. The bill establishes annual emergency medical service assessment and reporting requirements for each district advisory council. Discontinuance of the authority to impose the additional tax under the bill must be by petition and election of the resident eligible electors.
   Code chapter 422D authorizes counties to impose a property tax levy, an income surtax, or a combination of both taxes within the county, excluding those areas within a benefited emergency medical services district under Code chapter 357F, to be used for emergency medical services, if the taxes are approved at election.
   Division II of the bill establishes a requirement for counties, prior to seeking approval from the voters to impose the taxes, to adopt a resolution declaring emergency medical services to be an essential service within the county. The bill establishes the procedural requirement for adoption of the resolution and provides that the requirements for approval of the resolution or approval of the imposition of a tax shall not be suspended or waived by the board.
   In addition, each county for which such a resolution has been adopted shall coordinate efforts with the local emergency medical services agencies to establish a county emergency medical services system advisory council to recommend an amount of taxes to be raised and included on the ballot and assist in researching and assessing the service needs of the county and guiding implementation of services in the county. The bill establishes annual emergency medical service assessment and reporting requirements for each county emergency medical services system advisory council.
   Code chapter 422D currently provides that imposition of the taxes or combination of taxes is for a maximum period of five years. The bill removes the five-year limitation and provides that discontinuance of the county’s authority to impose the taxes is required to be by petition of eligible electors and election. The bill also specifies that a county may not impose the taxes for any fiscal year or tax year, as applicable, beginning after the election approving the discontinuance of authority unless subsequently again approved for imposition. Following discontinuance of authority, authority to reimpose the taxes requires approval in accordance with Code section 422D.1, as amended in the bill.
   The bill amends provisions regarding the permissible years for which imposition of the approved taxes may begin.
   Division II of the bill does not affect the imposition and collection of taxes under Code chapter 422D in effect on July 1, 2021, and such taxes shall continue to be imposed and administered until the period of authority to impose such taxes in effect immediately prior to July 1, 2021, expires.