Senate File 461 - Reprinted



                                       SENATE FILE       
                                       BY  COMMITTEE ON WAYS AND MEANS

                                           (SUCCESSOR TO SSB 1211)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for petition and election to approve the use of
  2    increased local sales and services tax revenues to fund urban
  3    renewal projects.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 SF 461
  6 md/sc:mg/jh/26

PAG LIN



  1  1    Section 1.  Section 423B.1, subsection 6, paragraph c, Code
  1  2 2009, is amended to read as follows:
  1  3    c.  Notwithstanding any other provision in this section, a
  1  4 change in use of the local sales and services tax revenues for
  1  5 purposes of funding an urban renewal project pursuant to
  1  6 section 423B.10 does not require an election, except as
  1  7 provided in section 423B.10, subsection 2.
  1  8    Sec. 2.  Section 423B.10, subsection 2, Code 2009, is
  1  9 amended to read as follows:
  1 10    2.  a.  An eligible city may by ordinance of the city
  1 11 council provide for the use of a designated amount of the
  1 12 increased local sales and services tax revenues collected
  1 13 under this chapter which are attributable to retail
  1 14 establishments in an urban renewal area to fund urban renewal
  1 15 projects located in the area.  The designated amount may be
  1 16 all or a portion of such the increased revenues allocable to
  1 17 the eligible city under section 423B.7.
  1 18    b.  Prior to consideration of an ordinance under this
  1 19 section, a city council shall adopt a resolution stating its
  1 20 intent to propose the ordinance.  If within thirty days of the
  1 21 adoption of the resolution, a petition is filed with the clerk
  1 22 of the city in the manner provided by section 362.4 asking
  1 23 that the question of the use of a designated amount of the
  1 24 increased revenues allocable to the city be submitted to the
  1 25 registered voters of the city, the council shall either by
  1 26 resolution declare the proposal to have been abandoned or
  1 27 shall direct the county commissioner of elections to call a
  1 28 special election to be held on a date specified in section
  1 29 39.2, subsection 4, paragraph "b".  If the vote in favor of
  1 30 the proposition is equal to at least a majority of the total
  1 31 votes cast for and against the proposition, the city council
  1 32 may proceed with consideration of an ordinance authorizing
  1 33 funding of urban renewal projects as provided in paragraph
  1 34 "a".
  1 35    c.  If no petition is filed, the council may proceed with
  2  1 consideration of an ordinance authorizing funding of urban
  2  2 renewal projects as provided in paragraph "a".
  2  3    Sec. 3.  Section 423B.10, subsection 3, unnumbered
  2  4 paragraph 1, Code 2009, is amended to read as follows:
  2  5    To determine the revenue increase allocable to the city for
  2  6 purposes of subsection 2, revenue amounts shall be calculated
  2  7 by the department of revenue as follows:
  2  8    Sec. 4.  TAXES RECEIVED PRIOR TO EFFECTIVE DATE.  The
  2  9 amount of the increased local sales and services taxes
  2 10 received by a city under chapter 423B prior to the effective
  2 11 date of this Act that have been designated by a city by
  2 12 ordinance to fund urban renewal projects pursuant to section
  2 13 423B.10 shall be deposited in the city's special fund created
  2 14 in section 403.19, subsection 2, and shall be used to fund
  2 15 urban renewal projects located in an urban renewal area.
  2 16    Sec. 5.  OBLIGATIONS OF CITIES.  This Act shall not
  2 17 relieve, impair, or otherwise alter the obligations of a city
  2 18 relating to bonds issued pursuant to chapter 403 prior to the
  2 19 effective date of this Act or contracts made prior to the
  2 20 effective date of this Act in connection with an urban renewal
  2 21 project.
  2 22 SF 461
  2 23 md/sc:mg/jh/26