House File 711 - Introduced HOUSE FILE 711 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HSB 244) A BILL FOR An Act relating to levee and drainage districts, by providing 1 for the repair or reconstruction of levees, requesting the 2 establishment of a legislative interim committee to consider 3 levee and drainage district laws, making appropriations, and 4 including effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2530HV (1) 90 da/ns

H.F. 711 DIVISION I 1 LEVEE IMPROVEMENTS 2 Section 1. Section 8.57, subsection 5, paragraph f, 3 subparagraph (1), Code 2023, is amended by adding the following 4 new subparagraph division: 5 NEW SUBPARAGRAPH DIVISION . (0e) (i) For the fiscal year 6 beginning July 1, 2023, and for each fiscal year thereafter 7 through the fiscal year beginning July 1, 2027, of the wagering 8 tax receipts received pursuant to sections 99D.17 and 99F.11, 9 the next five million dollars shall be deposited in the levee 10 improvement fund created in section 8.57D. 11 (ii) This subparagraph division is repealed July 1, 2028. 12 Sec. 2. NEW SECTION . 8.57D Levee improvement fund —— 13 creation —— appropriations. 14 1. A levee improvement fund is created within the department 15 of homeland security and emergency management created pursuant 16 to section 29C.5 which shall be under the control of that 17 department. 18 2. The levee improvement fund shall consist of moneys 19 deposited in the fund pursuant to section 8.57, subsection 5, 20 paragraph “f” , subparagraph (1), subparagraph division (0e); 21 appropriations made to the fund; and transfers of interest, 22 earnings, and moneys from other funds as provided by law. 23 3. The levee improvement fund shall be separate from the 24 general fund of the state and the balance in the fund shall 25 not be considered part of the balance of the general fund of 26 the state. However, the fund shall be considered a special 27 account for the purposes of section 8.53, relating to generally 28 accepted accounting principles. 29 4. a. Moneys in the levee improvement fund are appropriated 30 to the department of homeland security and emergency management 31 for the exclusive purpose of supporting all of the following: 32 (1) The office of levee safety, including to conduct a 33 statewide analysis of the condition of the state’s levees as 34 provided in section 418A.4. 35 -1- LSB 2530HV (1) 90 da/ns 1/ 8

H.F. 711 (2) The flood mitigation board, including to award 1 cost-share moneys to levee districts pursuant to the levee 2 improvement program as provided in section 418A.5. 3 b. Not more than five percent of moneys in the levee 4 improvement fund shall be available to defray expenses incurred 5 in administering chapter 418A by the department, including the 6 office of levee safety and flood mitigation board. 7 5. a. Notwithstanding section 8.33, moneys in the levee 8 improvement fund that remain unencumbered or unobligated at 9 the close of a fiscal year shall not revert but shall remain 10 available for the expenditure for the purposes designated. 11 b. Notwithstanding section 12C.7, subsection 2, interest or 12 earnings on moneys in the fund shall be credited to the fund. 13 6. This section is repealed July 1, 2028. 14 Sec. 3. NEW SECTION . 418A.1 Definitions. 15 For the purposes of this chapter, unless the context 16 otherwise requires: 17 1. “Board” means the flood mitigation board created in 18 section 418.5. 19 2. “Department” means the department of homeland security 20 and emergency management created in section 29C.5. 21 3. “Hazardous event” means an event caused by a levee’s 22 uncontrolled or controlled release of surface water in a manner 23 that may injure humans and animals or damage real and personal 24 property used for agricultural, commercial, industrial, 25 residential, or public purposes. 26 4. “Levee district” means a levee district, including a 27 subdistrict, established pursuant to chapter 468. 28 5. “Office” means the office of levee safety created in 29 section 418A.3. 30 6. “Program” means the levee improvement program established 31 pursuant to section 418A.5. 32 7. “Survey” means the Iowa geological survey created in 33 section 456.1. 34 Sec. 4. NEW SECTION . 418A.2 Purpose. 35 -2- LSB 2530HV (1) 90 da/ns 2/ 8

H.F. 711 The purpose of this chapter is to reduce and manage 1 risks associated with a hazardous event caused by a levee’s 2 inadequate design, structural performance, or operational 3 control. 4 Sec. 5. NEW SECTION . 418A.3 Office of levee safety. 5 1. An office of levee safety is created within the 6 department. 7 2. a. In administering this chapter, all of the following 8 apply: 9 (1) The office shall cooperate with the flood mitigation 10 board. 11 (2) The office and the board shall cooperate with the Iowa 12 geological survey. 13 b. The office and board may cooperate with other state 14 and federal agencies, including the United States army corps 15 of engineers and the federal emergency management agency, 16 administering the national levee safety program, as provided in 17 33 U.S.C. ch. 46. 18 3. The office, in cooperation with the board, shall assist 19 communities benefiting from a levee, including levee districts. 20 The office, in cooperation with the board, shall evaluate 21 methods to best carry out the purpose of this chapter. 22 Sec. 6. NEW SECTION . 418A.4 Statewide analysis. 23 1. The office of levee safety, in cooperation with the Iowa 24 geological survey, shall conduct a statewide analysis of the 25 condition of the state’s levees. The office and survey shall 26 identify each levee requiring repair or reconstruction based on 27 a scale adopted by the office which assigns a number based on 28 the levee’s level of critical need. The office shall consider 29 all of the following: 30 a. Deficiencies in the construction, maintenance, and 31 operation of each levee in a levee district. 32 b. The amount of capital expenditures required for the 33 repair or reconstruction for each levee in a levee district. 34 c. Payment obligations creating legal indebtedness incurred 35 -3- LSB 2530HV (1) 90 da/ns 3/ 8

H.F. 711 by the levee district, including those evidenced by bonds, 1 warrants, certificates, contracts, or judgments. 2 d. The current total revenue collected by the levee 3 district, and the budgeted revenue ceiling of the levee 4 district based on a maximum assessment rate for classified 5 lands used to maintain the levee as apportioned to each owner 6 of such land. 7 2. The governing body of each levee district shall assist 8 the office in conducting the analysis for the governing body’s 9 levee district. 10 3. This section is repealed July 1, 2028. 11 Sec. 7. NEW SECTION . 418A.5 Flood mitigation board —— levee 12 improvement program. 13 1. A levee improvement program is established to provide 14 for the repair or reconstruction of those levees requiring 15 immediate capital expenditure in order to reduce and manage 16 a hazardous event. The program shall be administered by the 17 flood mitigation board acting in cooperation with the office of 18 levee safety. 19 2. In administering the program, the board, acting in 20 cooperation with the office, shall award moneys to levee 21 districts applying for assistance on a cost-share basis. The 22 amount of cost-share moneys contributed by the board shall not 23 exceed fifty percent of the estimated cost or fifty percent of 24 the actual cost of the improvement, whichever is less. 25 3. a. The department shall provide for the publication and 26 submission of applications for an award of cost-share moneys 27 under the program. The board, in cooperation with the office, 28 shall approve or disapprove the applications based on criteria 29 established by the board. 30 b. (1) The board shall consider the scale number assigned 31 to the levee by the office as provided in section 418A.4. 32 (2) This paragraph is repealed July 1, 2028. 33 4. The department may enter into a chapter 28E agreement in 34 order to administer the program on behalf of the board. 35 -4- LSB 2530HV (1) 90 da/ns 4/ 8

H.F. 711 Sec. 8. NEW SECTION . 418A.6 Department —— statewide levee 1 improvement report. 2 1. The department of homeland security and emergency 3 management shall prepare and submit a statewide levee 4 assessment report to the governor and general assembly not 5 later than January 5 of each year. 6 2. a. (1) The statewide levee assessment report must 7 include a summary of the condition of levees in each levee 8 district. 9 (2) This paragraph is repealed July 1, 2028. 10 b. The statewide levee assessment report must identify those 11 levees having the highest level of critical need of repair or 12 reconstruction and the budget of a levee district to finance 13 the repair or reconstruction. 14 3. The statewide levee assessment report must include 15 the results of efforts to repair or reconstruct levees using 16 cost-share moneys awarded to the governing bodies of levee 17 districts under the levee improvement program. 18 4. The statewide levee assessment report must include 19 a summary of future plans to administer the program. The 20 statewide levee assessment report may include recommendations 21 for additional funding and legislation necessary to carry out 22 the purpose of this chapter. 23 Sec. 9. NEW SECTION . 456.15 Levees. 24 The Iowa geological survey shall assist the office of levee 25 safety as provided in chapter 418A. 26 Sec. 10. EFFECTIVE DATE. This division of this Act, being 27 deemed of immediate importance, takes effect upon enactment. 28 DIVISION II 29 LEGISLATIVE INTERIM STUDY 30 Sec. 11. INTERIM COMMITTEE. The legislative council is 31 requested to establish an interim study committee to review 32 Iowa’s levee and drainage district laws, including chapter 468. 33 The interim committee, if established, is charged to update 34 laws regarding the rights and duties of landowners to manage 35 -5- LSB 2530HV (1) 90 da/ns 5/ 8

H.F. 711 water resources within watershed areas; the establishment and 1 governance of districts; the construction, maintenance, and 2 repair of improvements; and the financing of improvements. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 BACKGROUND. This bill amends provisions that relate to a 7 levee or drainage district, including subdistricts, where a 8 project (improvement) is constructed to divert or store water 9 in a manner that allows land that would otherwise be saturated 10 to instead be used for development, including agricultural 11 production (Code chapter 468). A district is established 12 and managed by different forms of local governing bodies, 13 including a board of supervisors or joint boards of supervisors 14 governing intercounty districts. An established district may 15 also be managed by a board of trustees elected by landowners 16 in the district. An improvement may include a facility that 17 increases the district’s capacity to divert or store water 18 by new construction, such as the installation of a drain or 19 tile line or ditch, the modification of a watercourse, or the 20 erection of a barrier such as a dam or embankment. It may 21 also include the maintenance of a constructed facility that 22 restores the district’s original capacity such as dredging a 23 drainage ditch. The expense associated with an improvement 24 is borne by owners of land located within the district. A 25 special property tax “assessment” is imposed on a prorated 26 basis according to a formula that distributes the total tax 27 amount due among affected landowners based on the relative 28 increase to the owner’s land value assigned a “classification” 29 according to 40-acre or less tracts. The land subject to an 30 increased valuation is referred to as being “benefited” by the 31 improvement. 32 BILL’S PROVISIONS —— LEVEE IMPROVEMENT FUND. The bill 33 establishes a levee improvement fund (new Code section 34 8.57D) supported by revenues deposited in the rebuild Iowa 35 -6- LSB 2530HV (1) 90 da/ns 6/ 8

H.F. 711 infrastructure fund which includes moneys derived from 1 wagering tax receipts (amended Code section 8.57(5)). The 2 bill appropriates $5 million to the levee improvement fund 3 for each of the next five fiscal years to support efforts by 4 the department of homeland security and emergency management 5 (department) to repair or reconstruct levees in order to reduce 6 and manage risks associated with hazardous events caused by a 7 levee’s uncontrolled or controlled release of surface water 8 as a consequence of the levee’s inadequate design, structural 9 performance, or operational control (new Code section 418A.2). 10 BILL’S PROVISIONS —— LEVEE IMPROVEMENT PURPOSE —— 11 ADMINISTRATION. The bill creates an office of levee safety 12 (office) within the department (new Code section 418A.3) 13 and assigns new duties and powers to the flood mitigation 14 board (board). The office, in cooperation with the board, is 15 required to assist communities, including levee districts, 16 benefiting from levees. The office, in cooperation with the 17 Iowa geological survey (survey), is required to conduct a 18 statewide analysis (analysis) of the condition of the state’s 19 levees and the budget of levee districts required to finance 20 the repair or reconstruction of those levees (new Code section 21 418A.4). The governing body of each levee district is required 22 to assist the office in conducting its analysis. The board is 23 required to administer a levee improvement program (program) 24 (new Code section 418A.5). The purpose of the program is to 25 finance, on a cost-share basis, the repair or reconstruction of 26 levees based on criteria established by the board, including 27 levees assigned a scale number by the office when conducting 28 its analysis. The department is required to submit an annual 29 report to the governor and general assembly regarding the 30 status of the analysis and program (new Code section 418A.6). 31 BILL’S PROVISIONS —— LEGISLATIVE INTERIM STUDY. The bill 32 requests the legislative council to establish an interim study 33 committee to review Iowa’s levee and drainage district laws. 34 The interim committee would consider updating laws regarding 35 -7- LSB 2530HV (1) 90 da/ns 7/ 8