HSB 272 (LSB 2400YC (3) 91)

HOUSE FILE _____ 

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

A BILL FOR

An Act relating to the emergency medical services trust fund by modifying the division of revenue pursuant to urban renewal and modifying permissible expenditures from the fund, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 403.19, subsection 2, paragraph a, Code 2025, is amended to read as follows:
   a.  That portion of the taxes each year in excess of such amount shall be allocated to and when collected be paid into a special fund of the municipality to pay the principal of and interest on loans, moneys advanced to, or indebtedness, whether funded, refunded, assumed, or otherwise, including bonds issued under the authority of section 403.9, subsection 1, incurred by the municipality to finance or refinance, in whole or in part, an urban renewal project within the area, and to provide assistance for low and moderate income family housing as provided in section 403.22. However, except as provided in paragraph “b”, taxes for the regular and voter-approved physical plant and equipment levy of a school district imposed pursuant to section 298.2 and taxes for the instructional support program of a school district imposed pursuant to section 257.19, taxes for the payment of bonds and interest of each taxing district, taxes for emergency medical services imposed pursuant to chapter 422D, and taxes imposed under section 346.27, subsection 22, related to joint county-city buildings shall be collected against all taxable property within the taxing district without limitation by the provisions of this subsection.
    Sec. 2.  Section 422D.6, subsection 3, Code 2025, is amended by striking the subsection and inserting in lieu thereof the following:
   3.  Expenditures from the emergency medical services trust fund shall be used by a county to provide services and purchase items directly related to providing quality emergency medical services that are aligned with the resolution adopted by the county emergency medical services system advisory council and approved by the voters. The expenditures shall not be used in violation of laws relating to the delivery of emergency medical services or be used to fund the service of debt.
    Sec. 3.  APPLICABILITY.  The following applies to property taxes due and payable in fiscal years beginning on or after July 1, 2026:
   The section of this Act amending section 403.19.
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 the emergency medical services trust fund (fund) by modifying the division of revenue pursuant to urban renewal and modifying permissible expenditures from the fund.
   The bill excludes property taxes for emergency medical services imposed pursuant to Code chapter 422D from a division of revenue (tax increment financing) under Code section 403.19. The amendment to Code section 403.19 applies to property taxes due and payable in fiscal years beginning on or after July 1, 2026.
   The bill strikes the specific list of permissible expenditures from the fund, and specifies that expenditures from the fund must be used to directly provide or support emergency medical services, not violate laws relating to the delivery of such services, and not be used to service debt.