Senate Study Bill 1190 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WEBSTER) A BILL FOR An Act relating to solid waste collection and disposal by 1 establishing a maximum rate increase charged by governmental 2 entities and creating a property tax rebate for service 3 charges. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1181XC (5) 91 sb/js

S.F. _____ Section 1. Section 28G.4, subsection 1, Code 2025, is 1 amended to read as follows: 2 1. a. Engage in, manage, own, operate, and regulate the 3 collection, transportation, storage, and disposal or diversion 4 of solid waste including, but not limited to, the designation 5 of a specific facility which that must be used for the 6 collection, transportation, storage, and disposal or diversion 7 of solid waste within its jurisdiction or geographic area. 8 However, the aggregate of the rates and charges for solid 9 waste collection and disposal services shall not exceed the 10 lower of one hundred two percent of the aggregate of the rates 11 and charges from the previous budget year or the percentage 12 increase in the consumer price index for the midwest region as 13 determined by the United States department of labor, bureau of 14 labor statistics, or a successor index. 15 b. Increases to rates and charges for solid waste collection 16 and disposal services planned prior to July 1, 2025, for 17 repayment of debt incurred before July 1, 2025, shall be 18 excluded from rate and charge increase limits established in 19 paragraph “a” . 20 c. If rate and charge increases for solid waste collection 21 and disposal services exceed the limits required in paragraph 22 “a” , the increased rate or charge shall be effective at the 23 start of the budget year. The legal entity shall direct the 24 county commissioner of elections in each county where the legal 25 entity has jurisdiction to submit to the registered voters 26 of the jurisdiction or geographic area at the next general 27 election the question of whether to accept the increased 28 rate or charge by the proposed amount. The result of the 29 election shall take effect immediately upon certification. If 30 the question fails, all rates and charges paid by customers 31 for solid waste collection and disposal services exceeding 32 the limits established in paragraph “a” from the beginning 33 of the current budget year until the certification of the 34 election shall be refunded by January 1 following the general 35 -1- LSB 1181XC (5) 91 sb/js 1/ 8

S.F. _____ election and the aggregate of rates and charges for solid waste 1 collection and disposal services shall immediately be reduced 2 to the lower of one hundred two percent of the aggregate of 3 the rates and charges from the previous budget year or the 4 percentage increase in consumer price index for the midwest 5 region as determined by the United States department of labor, 6 bureau of labor statistics, or a successor index. 7 Sec. 2. Section 331.465, subsection 1, Code 2025, is amended 8 to read as follows: 9 1. a. The board may establish, impose, adjust, and provide 10 for the collection of rates to produce gross revenues at least 11 sufficient to pay the expenses of operation and maintenance 12 of the county enterprise or combined county enterprise and, 13 if revenue bonds or pledge orders are issued and outstanding 14 under this part, shall establish, impose, adjust, and provide 15 for the collection of rates to produce gross revenues at least 16 sufficient to pay the expenses of operation and maintenance of 17 the county enterprise or combined county enterprise, and to 18 leave a balance of net revenues sufficient at all times to pay 19 the principal of and interest on the revenue bonds and pledge 20 orders as they become due and to maintain a reasonable reserve 21 for the payment of the principal and interest, and a sufficient 22 portion of net revenues shall be pledged for that purpose. 23 b. Rates shall be established by ordinance. Rates or 24 charges for the services of a county enterprise defined 25 in section 331.461, subsection 2 , paragraph “b” , if not 26 paid as provided by ordinance, constitute a lien upon the 27 premises served and may be certified to the county treasurer 28 and collected in the same manner as taxes. The treasurer 29 may charge five dollars for each lien certified as an 30 administrative expense, which amount shall be added to the 31 amount of the lien to be collected at the time of payment of the 32 assessment from the payor and credited to the county general 33 fund. 34 c. The aggregate of the rates and charges for solid waste 35 -2- LSB 1181XC (5) 91 sb/js 2/ 8

S.F. _____ collection and disposal services shall not exceed the lower 1 of one hundred two percent of the aggregate of the rates 2 and charges from the previous budget year or the percentage 3 increase in the consumer price index for the midwest region as 4 determined by the United States department of labor, bureau of 5 labor statistics, or a successor index. Increases to rates 6 and charges for solid waste collection and disposal services 7 planned prior to July 1, 2025, for repayment of debt incurred 8 before July 1, 2025, shall be excluded from rate and charge 9 increase limits established in this paragraph. If rate and 10 charge increases for solid waste collection and disposal 11 services exceed the limits required in this paragraph, the 12 increased rate or charge shall be effective at the start of the 13 budget year. The board shall direct the county commissioner of 14 elections to submit to the registered voters of the county at 15 the next general election the question of whether to accept the 16 increased rate or charge by the proposed amount. The result of 17 the election shall take effect immediately upon certification. 18 If the question fails, all rates and charges paid by customers 19 for solid waste collection and disposal services exceeding the 20 limits established by this paragraph from the beginning of the 21 current budget year until the certification of the general 22 election shall be refunded by January 1 following the general 23 election and the aggregate of rates and charges for solid waste 24 collection and disposal services shall immediately be reduced 25 to the lower of one hundred two percent of the aggregate of 26 the rates and charges from the previous budget year or the 27 percentage increase in consumer price index for the midwest 28 region as determined by the United States department of labor, 29 bureau of labor statistics, or a successor index. 30 Sec. 3. Section 384.84, subsection 1, Code 2025, is amended 31 to read as follows: 32 1. a. The governing body of a city utility, combined 33 utility system, city enterprise, or combined city enterprise 34 may establish, impose, adjust, and provide for the collection 35 -3- LSB 1181XC (5) 91 sb/js 3/ 8

S.F. _____ of rates and charges to produce gross revenues at least 1 sufficient to pay the expenses of operation and maintenance of 2 the city utility, combined utility system, city enterprise, or 3 combined city enterprise. When revenue bonds or pledge orders 4 are issued and outstanding pursuant to this subchapter , the 5 governing body shall establish, impose, adjust, and provide 6 for the collection of rates to produce gross revenues at least 7 sufficient to pay the expenses of operation and maintenance of 8 the city utility, combined utility system, city enterprise, 9 or combined city enterprise, and to leave a balance of net 10 revenues sufficient to pay the principal of and interest on 11 the revenue bonds and pledge orders as they become due and to 12 maintain a reasonable reserve for the payment of principal 13 and interest, and a sufficient portion of net revenues must 14 be pledged for that purpose. Rates must be established by 15 ordinance of the council or by resolution of the trustees, 16 published in the same manner as an ordinance. 17 b. The aggregate of the rates and charges for solid waste 18 collection and disposal services shall not exceed the lower 19 of one hundred two percent of the aggregate of the rates 20 and charges from the previous budget year or the percentage 21 increase in the consumer price index for the midwest region as 22 determined by the United States department of labor, bureau of 23 labor statistics, or a successor index. Increases to rates 24 and charges for solid waste collection and disposal services 25 planned prior to July 1, 2025, for repayment of debt incurred 26 before July 1, 2025, shall be excluded from rate and charge 27 increase limits established in this paragraph. If rate and 28 charge increases for solid waste collection and disposal 29 services exceed the limits required in this paragraph, the 30 increased rate or charge shall be effective at the start of 31 the budget year. The governing body shall direct the county 32 commissioner of elections to submit to the registered voters of 33 the city at the next general election the question of whether 34 to accept the increased rate or charge by the proposed amount. 35 -4- LSB 1181XC (5) 91 sb/js 4/ 8

S.F. _____ The result of the election shall take effect immediately upon 1 certification. If the question fails, all rates and charges 2 paid by customers for solid waste collection and disposal 3 services over the limits established by this paragraph from the 4 beginning of the current budget year until the certification of 5 the general election shall be refunded by January 1 following 6 the general election and the aggregate of rates and charges for 7 solid waste collection and disposal services shall immediately 8 be reduced to the lower of one hundred two percent of the 9 aggregate of the rates and charges from the previous budget 10 year or the percentage increase in consumer price index for the 11 midwest region as determined by the United States department of 12 labor, bureau of labor statistics, or a successor index. 13 Sec. 4. NEW SECTION . 427B.27 Property tax rebate —— solid 14 waste collection and disposal services. 15 1. A county board of supervisors or city council, as 16 applicable, shall provide a property tax rebate to real 17 property owners that opt out of using county or city-provided 18 solid waste collection and disposal services when these 19 services are provided to the real property owner without being 20 charged a fee. The rebate shall equal the amount of property 21 taxes paid by the real property owner that is allocated 22 by the county board of supervisors or city council to fund 23 solid waste collection and disposal services for the most 24 recently completed fiscal year. A county board of supervisors 25 shall grant rebates only for property located outside of the 26 corporate limits of a city, and a city council shall grant 27 rebates only for property located within the corporate limits 28 of the city. 29 2. An application shall be filed by a real property owner 30 who opts out of solid waste collection and disposal services 31 for each property for which a rebate is sought. Applications 32 shall be filed with the respective county board of supervisors 33 or the city council by September 30 of the year following 34 the fiscal year for which the owner opted out of solid 35 -5- LSB 1181XC (5) 91 sb/js 5/ 8

S.F. _____ waste collection and disposal services. After the initial 1 application, the rebate shall continue to be paid each year 2 unless the real property owner opts back in to receiving solid 3 waste collection and disposal services or if title to the 4 rebated property changes from the name of the person or entity 5 originally receiving the rebate. 6 3. The board of supervisors or city council shall 7 approve the application unless the information provided is 8 not satisfactory under this section. Upon approval of the 9 application by the board of supervisors, each year after the 10 applicant has paid any property taxes due, the board shall 11 direct the county treasurer to issue a warrant to the real 12 property owner in the amount of the rebate granted. Upon 13 approval of the application by the city council, each year 14 after the applicant has paid any property taxes due, the 15 council shall direct the city clerk to issue a warrant to the 16 real property owner in the amount of the rebate granted. 17 4. Applications for a rebate shall be made on forms 18 prescribed by the director of revenue and shall contain 19 information pertaining to the real property owner’s alternative 20 solid waste disposal service and other information deemed 21 necessary by the director. 22 Sec. 5. CODE EDITOR DIRECTIVES. 23 1. The Code editor shall designate section 427B.27, as 24 enacted in this Act, as a new subchapter within chapter 427B, 25 entitled “Solid Waste Collection and Disposal Services Opt Out 26 Rebate”. 27 2. The Code editor may modify subchapter titles if necessary 28 and is directed to correct internal references in the Code as 29 necessary due to enactment of section 427B.27. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill creates a maximum yearly increase allowed for 34 solid waste collection and disposal rates charged by counties, 35 -6- LSB 1181XC (5) 91 sb/js 6/ 8

S.F. _____ cities, and intergovernmental solid waste collection and 1 disposal services. The bill sets the maximum increase of 2 solid waste collection and disposal services rates and charges 3 at 2 percent more than the aggregate of rates and charges 4 from the previous budget year or the percentage increase of 5 the consumer price index for the midwest region, whichever 6 is lower. The bill excludes increases to rates and charges 7 planned prior to July 1, 2025, for repayment of debt incurred 8 before July 1, 2025, from the increase limits. The bill 9 provides that if rate and charge increases exceed the limits, 10 the increased rate or charge shall be effective at the start 11 of the budget year. The relevant authority shall direct the 12 county commissioner of elections to submit to the registered 13 voters of the jurisdiction at the next general election the 14 question of whether to accept the increased rate or charge 15 by the proposed amount. The result of the election shall 16 take effect immediately upon certification. If the question 17 fails, all rates and charges paid by customers for solid waste 18 collection and disposal services exceeding the limits required 19 by the bill from the beginning of the current budget year until 20 the certification of the general election shall be refunded 21 by January 1 following the general election. Additionally, 22 if the question fails, the rates and charges for solid waste 23 collection and disposal services shall immediately be reduced 24 to 2 percent more than the aggregate of rates and charges 25 from the previous budget year or the percentage increase of 26 the consumer price index for the midwest region, whichever is 27 lower. 28 The bill also creates a property tax rebate for real property 29 owners who opt out of solid waste collection and disposal 30 services provided by a governmental entity if the governmental 31 entity does not charge fees for solid waste services and 32 provides relevant information concerning the application and 33 the payment time frame. The amount of the rebate shall be 34 determined by calculating how much of the real property owner’s 35 -7- LSB 1181XC (5) 91 sb/js 7/ 8

S.F. _____ property taxes were allocated to the costs of solid waste 1 services. To obtain this rebate, the real property owner must 2 submit an application to the relevant authority that provides 3 information relating to its alternative solid waste collection 4 and disposal service provider, along with other information 5 deemed necessary by the department of revenue. 6 -8- LSB 1181XC (5) 91 sb/js 8/ 8