SSB 1190 (LSB 1181XC (5) 91)

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 establishing a maximum rate increase charged by governmental entities and creating a property tax rebate for service charges.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 28G.4, subsection 1, Code 2025, is amended to read as follows:
   1.  a.  Engage in, manage, own, operate, and regulate the collection, transportation, storage, and disposal or diversion of solid waste including, but not limited to, the designation of a specific facility which that must be used for the collection, transportation, storage, and disposal or diversion of solid waste within its jurisdiction or geographic area.  However, the aggregate of the rates and charges for solid waste collection and disposal services shall not exceed the lower of one hundred two percent of the aggregate of the rates and charges from the previous budget year or the percentage increase in the consumer price index for the midwest region as determined by the United States department of labor, bureau of labor statistics, or a successor index.
   b.  Increases to rates and charges for solid waste collection and disposal services planned prior to July 1, 2025, for repayment of debt incurred before July 1, 2025, shall be excluded from rate and charge increase limits established in paragraph “a”.
   c.  If rate and charge increases for solid waste collection and disposal services exceed the limits required in paragraph “a”, the increased rate or charge shall be effective at the start of the budget year. The legal entity shall direct the county commissioner of elections in each county where the legal entity has jurisdiction to submit to the registered voters of the jurisdiction or geographic area at the next general election the question of whether to accept the increased rate or charge by the proposed amount. The result of the election shall take effect immediately upon certification. If the question fails, all rates and charges paid by customers for solid waste collection and disposal services exceeding the limits established in paragraph “a” from the beginning of the current budget year until the certification of the election shall be refunded by January 1 following the general election and the aggregate of rates and charges for solid waste collection and disposal services shall immediately be reduced to the lower of one hundred two percent of the aggregate of the rates and charges from the previous budget year or the percentage increase in consumer price index for the midwest region as determined by the United States department of labor, bureau of labor statistics, or a successor index.
    Sec. 2.  Section 331.465, subsection 1, Code 2025, is amended to read as follows:
   1.  a.  The board may establish, impose, adjust, and provide for the collection of rates to produce gross revenues at least sufficient to pay the expenses of operation and maintenance of the county enterprise or combined county enterprise and, if revenue bonds or pledge orders are issued and outstanding under this part, shall establish, impose, adjust, and provide for the collection of rates to produce gross revenues at least sufficient to pay the expenses of operation and maintenance of the county enterprise or combined county enterprise, and to leave a balance of net revenues sufficient at all times to pay the principal of and interest on the revenue bonds and pledge orders as they become due and to maintain a reasonable reserve for the payment of the principal and interest, and a sufficient portion of net revenues shall be pledged for that purpose.
   b.  Rates shall be established by ordinance. Rates or charges for the services of a county enterprise defined in section 331.461, subsection 2, paragraph “b”, if not paid as provided by ordinance, constitute a lien upon the premises served and may be certified to the county treasurer and collected in the same manner as taxes. The treasurer may charge five dollars for each lien certified as an administrative expense, which amount shall be added to the amount of the lien to be collected at the time of payment of the assessment from the payor and credited to the county general fund.
   c.  The aggregate of the rates and charges for solid waste collection and disposal services shall not exceed the lower of one hundred two percent of the aggregate of the rates and charges from the previous budget year or the percentage increase in the consumer price index for the midwest region as determined by the United States department of labor, bureau of labor statistics, or a successor index. Increases to rates and charges for solid waste collection and disposal services planned prior to July 1, 2025, for repayment of debt incurred before July 1, 2025, shall be excluded from rate and charge increase limits established in this paragraph. If rate and charge increases for solid waste collection and disposal services exceed the limits required in this paragraph, the increased rate or charge shall be effective at the start of the budget year. The board shall direct the county commissioner of elections to submit to the registered voters of the county at the next general election the question of whether to accept the increased rate or charge by the proposed amount. The result of the election shall take effect immediately upon certification. If the question fails, all rates and charges paid by customers for solid waste collection and disposal services exceeding the limits established by this paragraph from the beginning of the current budget year until the certification of the general election shall be refunded by January 1 following the general election and the aggregate of rates and charges for solid waste collection and disposal services shall immediately be reduced to the lower of one hundred two percent of the aggregate of the rates and charges from the previous budget year or the percentage increase in consumer price index for the midwest region as determined by the United States department of labor, bureau of labor statistics, or a successor index.
    Sec. 3.  Section 384.84, subsection 1, Code 2025, is amended to read as follows:
   1.  a.  The governing body of a city utility, combined utility system, city enterprise, or combined city enterprise may establish, impose, adjust, and provide for the collection of rates and charges to produce gross revenues at least sufficient to pay the expenses of operation and maintenance of the city utility, combined utility system, city enterprise, or combined city enterprise. When revenue bonds or pledge orders are issued and outstanding pursuant to this subchapter, the governing body shall establish, impose, adjust, and provide for the collection of rates to produce gross revenues at least sufficient to pay the expenses of operation and maintenance of the city utility, combined utility system, city enterprise, or combined city enterprise, and to leave a balance of net revenues sufficient to pay the principal of and interest on the revenue bonds and pledge orders as they become due and to maintain a reasonable reserve for the payment of principal and interest, and a sufficient portion of net revenues must be pledged for that purpose. Rates must be established by ordinance of the council or by resolution of the trustees, published in the same manner as an ordinance.
   b.  The aggregate of the rates and charges for solid waste collection and disposal services shall not exceed the lower of one hundred two percent of the aggregate of the rates and charges from the previous budget year or the percentage increase in the consumer price index for the midwest region as determined by the United States department of labor, bureau of labor statistics, or a successor index. Increases to rates and charges for solid waste collection and disposal services planned prior to July 1, 2025, for repayment of debt incurred before July 1, 2025, shall be excluded from rate and charge increase limits established in this paragraph. If rate and charge increases for solid waste collection and disposal services exceed the limits required in this paragraph, the increased rate or charge shall be effective at the start of the budget year. The governing body shall direct the county commissioner of elections to submit to the registered voters of the city at the next general election the question of whether to accept the increased rate or charge by the proposed amount. The result of the election shall take effect immediately upon certification. If the question fails, all rates and charges paid by customers for solid waste collection and disposal services over the limits established by this paragraph from the beginning of the current budget year until the certification of the general election shall be refunded by January 1 following the general election and the aggregate of rates and charges for solid waste collection and disposal services shall immediately be reduced to the lower of one hundred two percent of the aggregate of the rates and charges from the previous budget year or the percentage increase in consumer price index for the midwest region as determined by the United States department of labor, bureau of labor statistics, or a successor index.
    Sec. 4.  NEW SECTION.  427B.27  Property tax rebate —— solid waste collection and disposal services.
   1.  A county board of supervisors or city council, as applicable, shall provide a property tax rebate to real property owners that opt out of using county or city-provided solid waste collection and disposal services when these services are provided to the real property owner without being charged a fee. The rebate shall equal the amount of property taxes paid by the real property owner that is allocated by the county board of supervisors or city council to fund solid waste collection and disposal services for the most recently completed fiscal year. A county board of supervisors shall grant rebates only for property located outside of the corporate limits of a city, and a city council shall grant rebates only for property located within the corporate limits of the city.
   2.  An application shall be filed by a real property owner who opts out of solid waste collection and disposal services for each property for which a rebate is sought. Applications shall be filed with the respective county board of supervisors or the city council by September 30 of the year following the fiscal year for which the owner opted out of solid waste collection and disposal services. After the initial application, the rebate shall continue to be paid each year unless the real property owner opts back in to receiving solid waste collection and disposal services or if title to the rebated property changes from the name of the person or entity originally receiving the rebate.
   3.  The board of supervisors or city council shall approve the application unless the information provided is not satisfactory under this section. Upon approval of the application by the board of supervisors, each year after the applicant has paid any property taxes due, the board shall direct the county treasurer to issue a warrant to the real property owner in the amount of the rebate granted. Upon approval of the application by the city council, each year after the applicant has paid any property taxes due, the council shall direct the city clerk to issue a warrant to the real property owner in the amount of the rebate granted.
   4.  Applications for a rebate shall be made on forms prescribed by the director of revenue and shall contain information pertaining to the real property owner’s alternative solid waste disposal service and other information deemed necessary by the director.
    Sec. 5.  CODE EDITOR DIRECTIVES.
   1.  The Code editor shall designate section 427B.27, as enacted in this Act, as a new subchapter within chapter 427B, entitled “Solid Waste Collection and Disposal Services Opt Out Rebate”.
   2.  The Code editor may modify subchapter titles if necessary and is directed to correct internal references in the Code as necessary due to enactment of section 427B.27.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill creates a maximum yearly increase allowed for solid waste collection and disposal rates charged by counties, cities, and intergovernmental solid waste collection and disposal services. The bill sets the maximum increase of solid waste collection and disposal services rates and charges at 2 percent more than the aggregate of rates and charges from the previous budget year or the percentage increase of the consumer price index for the midwest region, whichever is lower. The bill excludes increases to rates and charges planned prior to July 1, 2025, for repayment of debt incurred before July 1, 2025, from the increase limits. The bill provides that if rate and charge increases exceed the limits, the increased rate or charge shall be effective at the start of the budget year. The relevant authority shall direct the county commissioner of elections to submit to the registered voters of the jurisdiction at the next general election the question of whether to accept the increased rate or charge by the proposed amount. The result of the election shall take effect immediately upon certification. If the question fails, all rates and charges paid by customers for solid waste collection and disposal services exceeding the limits required by the bill from the beginning of the current budget year until the certification of the general election shall be refunded by January 1 following the general election. Additionally, if the question fails, the rates and charges for solid waste collection and disposal services shall immediately be reduced to 2 percent more than the aggregate of rates and charges from the previous budget year or the percentage increase of the consumer price index for the midwest region, whichever is lower.
   The bill also creates a property tax rebate for real property owners who opt out of solid waste collection and disposal services provided by a governmental entity if the governmental entity does not charge fees for solid waste services and provides relevant information concerning the application and the payment time frame. The amount of the rebate shall be determined by calculating how much of the real property owner’s property taxes were allocated to the costs of solid waste services. To obtain this rebate, the real property owner must submit an application to the relevant authority that provides information relating to its alternative solid waste collection and disposal service provider, along with other information deemed necessary by the department of revenue.