House File 2456 - Reprinted HOUSE FILE 2456 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 668) (As Amended and Passed by the House April 1, 2014 ) A BILL FOR An Act relating to the approval and imposition of the 1 facilities property tax levy and the equipment replacement 2 and program sharing property tax levy for a merged area and 3 including effective date and applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 HF 2456 (4) 85 md/sc/md

H.F. 2456 Section 1. Section 260C.15, subsection 1, Code 2014, is 1 amended to read as follows: 2 1. Regular elections held by the merged area for the 3 election of members of the board of directors as required by 4 section 260C.11 or for any other matter authorized by law and 5 designated for election by the board of directors of the merged 6 area, shall be held on the date of the school election as fixed 7 by section 277.1 . However, elections held for the renewal 8 imposition, rate change, or discontinuance of the twenty and 9 one-fourth cents per thousand dollars of assessed valuation 10 levy authorized in section 260C.22 shall be held either on the 11 date of the school election as fixed by section 277.1 or at a 12 special election held on the second Tuesday in September of 13 the even-numbered year. The election notice shall be made a 14 part of the local school election notice published as provided 15 in section 49.53 in each local school district where voting is 16 to occur in the merged area election and the election shall be 17 conducted by the county commissioner of elections pursuant to 18 chapters 39 through 53 and section 277.20 . 19 Sec. 2. Section 260C.22, subsection 1, paragraphs a and b, 20 Code 2014, are amended to read as follows: 21 a. In addition to the tax authorized under section 260C.17 22 and upon resolution of the board of directors , the voters 23 in a merged area may at the regular school election or at a 24 special election held on the second Tuesday in September of 25 the even-numbered year vote a tax not exceeding twenty and 26 one-fourth cents per thousand dollars of assessed value in any 27 one year for a period not to exceed ten years , unless otherwise 28 provided under subsection 2, for the purchase of grounds, 29 construction of buildings, payment of debts contracted for the 30 construction of buildings, purchase of buildings and equipment 31 for buildings, and the acquisition of libraries, for the 32 purpose of paying costs of utilities, and for the purpose of 33 maintaining, remodeling, improving, or expanding the community 34 college of the merged area. If the tax levy is approved under 35 -1- HF 2456 (4) 85 md/sc/md 1/ 6

H.F. 2456 this section , the costs of utilities shall be paid from the 1 proceeds of the levy. The tax shall be collected by the county 2 treasurers and remitted to the treasurer of the merged area as 3 provided in section 331.552, subsection 29 . The proceeds of 4 the tax shall be deposited in a separate and distinct fund to 5 be known as the voted tax fund, to be paid out upon warrants 6 drawn by the president and secretary of the board of directors 7 of the merged area district for the payment of costs incurred 8 in providing the school facilities for which the tax was voted 9 authorized . 10 b. In order to make immediately available to the merged 11 area the proceeds of the voted tax hereinbefore authorized to 12 be levied under this section , the board of directors of any 13 such merged area is hereby authorized, without the necessity 14 for any further election, to borrow money and enter into loan 15 agreements in anticipation of the collection of such tax, 16 and such board shall, by resolution, provide for the levy 17 of an annual tax, within the limits of the special voted 18 tax hereinbefore authorized under this section , sufficient 19 to pay the amount of any such loan and the interest thereon 20 to maturity as the same becomes due. A certified copy of 21 this resolution shall be filed with the county auditors of 22 the counties in which such merged area is located, and the 23 filing thereof shall make it a duty of such auditors to enter 24 annually this levy for collection until funds are realized 25 to repay the loan and interest thereon in full. Said loan 26 must mature within the number of years for which the tax has 27 been voted and shall bear interest at a rate or rates not 28 exceeding that permitted by chapter 74A . Any loan agreement 29 entered into pursuant to authority herein contained shall be 30 in such form as the board of directors shall by resolution 31 provide and the loan shall be payable as to both principal and 32 interest from the proceeds of the annual levy of the voted tax 33 hereinbefore authorized under this section , or so much thereof 34 as will be sufficient to pay the loan and interest thereon. In 35 -2- HF 2456 (4) 85 md/sc/md 2/ 6

H.F. 2456 furtherance of the foregoing the board of directors of such 1 merged area may, with or without notice, negotiate and enter 2 into a loan agreement or agreements with any bank, investment 3 banker, trust company, insurance company or group thereof, 4 whereunder the borrowing of the necessary funds may be assured 5 and consummated. The proceeds of such loan shall be deposited 6 in a special fund, to be kept separate and apart from all other 7 funds of the merged area, and shall be paid out upon warrants 8 drawn by the president and secretary of the board of directors 9 to pay the cost of acquiring the school facilities for which 10 the tax was voted authorized . 11 Sec. 3. Section 260C.22, subsections 2 and 3, Code 2014, 12 are amended by striking the subsections and inserting in lieu 13 thereof the following: 14 2. Following approval of the tax at two consecutive 15 elections under subsection 1 where the question of imposing 16 the tax appeared on the ballot, if the tax has been imposed 17 for a period of at least twenty consecutive years and either 18 the period of time for imposing the tax approved at the last 19 election under subsection 1 or the period of time for imposing 20 the tax established previously by resolution under this 21 subsection 2 is due to expire, the board of directors of the 22 merged area may, by resolution, continue to impose the voted 23 tax each year for a period not to exceed ten years at a rate not 24 to exceed the maximum rate approved at election until the tax 25 is discontinued or the maximum rate is increased following an 26 election pursuant to subsection 3. An increase in the maximum 27 rate of the voted tax, not to exceed the maximum rate specified 28 in subsection 1, shall be approved at election pursuant to the 29 requirements of subsection 3. 30 3. A voted tax imposed under this section may be 31 discontinued, or its maximum rate changed, by petition and 32 election. Upon receipt of a petition containing the required 33 number of signatures, the board of directors of a merged area 34 shall direct the county commissioner of elections responsible 35 -3- HF 2456 (4) 85 md/sc/md 3/ 6

H.F. 2456 under section 47.2 for conducting elections in the merged area 1 to submit to the voters of the merged area the question of 2 whether to discontinue the authority of the board of directors 3 to impose the voted tax under this section or to change the 4 maximum rate of the voted tax, whichever is applicable. The 5 petition must be signed by eligible electors equal in number to 6 not less than twenty-five percent of the votes cast at the last 7 preceding election in the merged area where the question of the 8 imposition of the tax appeared on the ballot. The question 9 shall be submitted at an election held on a date authorized for 10 an election under subsection 1, paragraph “a” . If a majority of 11 those voting on the question of discontinuance of the board of 12 directors’ authority to impose the tax favors discontinuance, 13 the board shall not impose the tax for any fiscal year 14 beginning after expiration of the period of time for imposing 15 the tax approved at the last election under subsection 1 or the 16 period of time for imposing the tax established by resolution 17 of the board under subsection 2 that is in effect on the 18 date the petition for the election is filed with the board, 19 whichever is applicable, unless following discontinuance the 20 voted tax is again authorized at election under subsection 1. 21 If a majority of those voting on the question to change the 22 maximum rate of the voted tax favors the proposed change, the 23 new maximum rate shall apply to fiscal years beginning after 24 the date of the election. 25 Sec. 4. Section 260C.22, subsection 4, Code 2014, is amended 26 by striking the subsection. 27 Sec. 5. Section 260C.28, subsection 3, Code 2014, is amended 28 to read as follows: 29 3. a. If the board of directors wishes to certify for a 30 levy under subsection 2 , the board shall direct the county 31 commissioner of elections to submit the question of such 32 authorization for the board at an election held on a date 33 specified in section 39.2, subsection 4 , paragraph “c” . If a 34 majority of those voting on the question at the election favors 35 -4- HF 2456 (4) 85 md/sc/md 4/ 6

H.F. 2456 authorization of the board to make such a levy, the board 1 may certify for a levy as provided under subsection 2 during 2 each of the ten years following the election , unless otherwise 3 authorized under paragraph “b” . If a majority of those voting 4 on the question at the election does not favor authorization 5 of the board to make a levy under subsection 2 , the board may 6 submit the question to the voters again at an election held on 7 a date specified in section 39.2, subsection 4 , paragraph “c” . 8 b. Following approval of the additional tax authorized 9 under subsection 2 at two consecutive elections under paragraph 10 “a” where the question of imposing the additional tax appeared 11 on the ballot, if the additional tax has been imposed for a 12 period of at least twenty consecutive years and either the 13 period of time for imposing the additional tax approved at the 14 last election under paragraph “a” or the period of time for 15 imposing the tax established previously by resolution under 16 this paragraph “b” is due to expire, the board of directors 17 of the merged area may, by resolution, continue to impose 18 the additional tax each year for a period not to exceed ten 19 years at a rate not to exceed the maximum rate authorized 20 under subsection 2, until the tax is discontinued following an 21 election pursuant to paragraph “c” . 22 c. The additional tax authorized under subsection 2 may 23 be discontinued by petition and election. Upon receipt of a 24 petition containing the required number of signatures, the 25 board of directors of a merged area shall direct the county 26 commissioner of elections responsible under section 47.2 for 27 conducting elections in the merged area to submit to the voters 28 of the merged area the question of whether to discontinue the 29 authority of the board of directors to impose the additional 30 tax under subsection 2. The petition must be signed by 31 eligible electors equal in number to not less than twenty-five 32 percent of the votes cast at the last preceding election in 33 the merged area where the question of the imposition of the 34 additional tax appeared on the ballot. The question shall 35 -5- HF 2456 (4) 85 md/sc/md 5/ 6

H.F. 2456 be submitted at an election held on a date specified in 1 section 39.2, subsection 4, paragraph “c” . If a majority of 2 those voting on the question of discontinuance of the board 3 of directors’ authority to impose the additional tax favors 4 discontinuance, the board shall not impose the additional 5 tax for any fiscal year beginning after the expiration of 6 the period of time for imposing the tax approved at the last 7 election under paragraph “a” or the period of time for imposing 8 the additional tax established by resolution of the board under 9 paragraph “b” that is in effect on the date the petition for 10 the election is filed with the board, whichever is applicable, 11 unless following discontinuance the additional tax is again 12 authorized at election under paragraph “a” . 13 Sec. 6. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 14 immediate importance, takes effect upon enactment. 15 Sec. 7. APPLICABILITY. 16 1. This Act applies to merged area voted taxes under section 17 260C.22 in effect on the effective date of this Act and merged 18 area voted taxes approved at election under section 260C.22 on 19 or after the effective date of this Act. 20 2. This Act applies to merged area taxes under section 21 260C.28, subsections 2 and 3, in effect on the effective date 22 of this Act and merged area taxes approved at election under 23 section 260C.28, subsection 3, on or after the effective date 24 of this Act. 25 -6- HF 2456 (4) 85 md/sc/md 6/ 6