House File 655 - Reprinted HOUSE FILE 655 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 556) (SUCCESSOR TO HSB 167) (As Amended and Passed by the House May 6, 2015 ) A BILL FOR An Act relating to community development by establishing 1 application rules and limitations for wireless 2 communications facilities and infrastructure and modifying 3 provisions related to reinvestment districts and flood 4 mitigation projects, and including effective date and 5 retroactive and other applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 HF 655 (4) 86 ad/sc/md

H.F. 655 DIVISION I 1 WIRELESS COMMUNICATIONS FACILITIES AND INFRASTRUCTURE 2 APPLICATIONS 3 Section 1. NEW SECTION . 8C.1 Short title. 4 This chapter shall be known and may be cited as the “Iowa 5 Cell Siting Act” . 6 Sec. 2. NEW SECTION . 8C.2 Definitions. 7 For the purposes of this chapter, unless the context 8 otherwise requires: 9 1. “Applicant” means any person engaged in the business of 10 providing wireless telecommunications services or the wireless 11 telecommunications infrastructure required for wireless 12 telecommunications services and who submits an application. 13 2. “Application” means a request submitted by an applicant 14 to an authority to construct a new tower, for the initial 15 placement of transmission equipment on a wireless support 16 structure, for the modification of an existing tower or 17 existing base station that constitutes a substantial change 18 to an existing tower or existing base station, or any other 19 request to construct or place transmission equipment that does 20 not meet the definition of an eligible facilities request. 21 3. “Authority” , used as a noun, means a state, county, 22 or city governing body, board, agency, office, or commission 23 authorized by law to make legislative, quasi-judicial, 24 or administrative decisions relative to an application. 25 “Authority” does not include state courts having jurisdiction 26 over land use, planning, or zoning decisions made by an 27 authority, the utilities division of the department of 28 commerce, or entities that do not have zoning or permitting 29 authority. 30 4. a. “Base station” means a structure or equipment at a 31 fixed location that enables wireless communications licensed by 32 the federal communications commission or authorized wireless 33 communications between user equipment and a communications 34 network. 35 -1- HF 655 (4) 86 ad/sc/md 1/ 18

H.F. 655 b. “Base station” does not mean a tower or equipment 1 associated with a tower. 2 c. “Base station” includes but is not limited to equipment 3 associated with wireless communications services such as 4 private, broadcast, and public safety services and unlicensed 5 wireless services and fixed wireless services such as microwave 6 backhaul. 7 d. “Base station” includes but is not limited to radio 8 transceivers, antennas, coaxial or fiberoptic cable, regular 9 and backup power supplies, and comparable equipment, regardless 10 of technological configuration. 11 e. “Base station” includes a structure other than a tower 12 that, at the time the relevant application is filed with 13 the state or local government, supports or houses equipment 14 described in this subsection that has been reviewed and 15 approved under the applicable zoning or siting process, or 16 under another state or local regulatory review process, even if 17 the structure was not built for the sole or primary purpose of 18 providing such support. 19 f. “Base station” does not include any structure that at 20 the time the relevant application is filed with the state or 21 local government does not support or house equipment described 22 in this subsection. 23 5. “Collocation” means the mounting or installation of 24 additional transmission equipment on a support structure 25 already in use for the purpose of transmitting or receiving 26 radio frequency signals for communications purposes. 27 5A. “Electric utility” means any owner or operator of 28 electric transmission or distribution facilities subject to the 29 regulation and enforcement activities of the Iowa utilities 30 board relating to safety standards. 31 6. “Eligible facilities request” means a request for 32 modification of an existing tower or base station that does 33 not substantially change the physical dimensions of the tower 34 or base station and involves collocation of new transmission 35 -2- HF 655 (4) 86 ad/sc/md 2/ 18

H.F. 655 equipment, the removal of transmission equipment, or the 1 replacement of transmission equipment. 2 7. “Existing tower” or “existing base station” means a tower 3 or base station that has been reviewed and approved under the 4 applicable zoning or siting process, or under another state or 5 local regulatory review process. “Existing tower” includes a 6 tower that was not reviewed and approved because it was not in 7 a zoned area when it was built and lawfully constructed. 8 8. “Initial placement or installation” means the first time 9 transmission equipment is placed or installed on a wireless 10 support structure. 11 9. a. “Site” , in relation to a tower that is not in the 12 public right-of-way, means the current boundaries of the leased 13 or owned property surrounding the tower and any access or 14 utility easements currently related to the site. 15 b. “Site” , in relation to support structures other than 16 towers, means an area in proximity to the structure and to 17 other transmission equipment already deployed on the ground. 18 10. “Substantial change” means a change in the existing 19 support structure which results in one or more of the 20 following: 21 a. (1) Increase in the height of a tower, other than a 22 tower in the public right-of-way, by more than ten percent or 23 by the height of one additional antenna array with separation 24 from the nearest existing antenna not to exceed twenty feet, 25 whichever is greater. 26 (2) Increase in the height of existing support structures, 27 other than a tower in subparagraph (1), by more than ten 28 percent or more than ten feet, whichever is greater. 29 (3) Height shall be measured from the original support 30 structure in cases where deployments are or will be separated 31 horizontally, such as on buildings’ rooftops. Otherwise, 32 height shall be measured from the dimensions of the tower or 33 base station, inclusive of originally approved appurtenances 34 and any modifications that were approved prior to the passage 35 -3- HF 655 (4) 86 ad/sc/md 3/ 18

H.F. 655 of the Spectrum Act, Pub. L. No. 112-96, Tit. VI. 1 b. (1) Addition of an appurtenance to the body of the 2 tower, other than a tower in the public right-of-way, that 3 would protrude from the edge of the tower more than twenty 4 feet, or more than the width of the tower structure at the 5 level of the appurtenance, whichever is greater. 6 (2) Addition of an appurtenance to an existing support 7 structure, other than a tower under subparagraph (1), that 8 would protrude from the edge of the structure by more than six 9 feet. 10 c. (1) Installation of more than the standard number of 11 new equipment cabinets for the technology involved, but not to 12 exceed four cabinets. 13 (2) Installation of any new equipment cabinets on the ground 14 if there are no preexisting ground cabinets associated with the 15 tower in the public right-of-way or base station. 16 (3) Installation of ground cabinets that are more than 17 ten percent larger in height or overall volume than any 18 other ground cabinets associated with a tower in the public 19 right-of-way or base station. 20 d. Excavation or deployment outside the current site. 21 e. Defeat of concealment elements of the existing support 22 structure. 23 f. Noncompliance with conditions associated with the siting 24 approval of the construction or modification of the existing 25 support structure or base station equipment, except if the 26 change is noncompliant only in a manner that does not exceed 27 the thresholds identified in paragraphs “a” through “d” . 28 11. “Tower” means a structure built for the sole or 29 primary purpose of supporting an antenna and the associated 30 facilities authorized or licensed by the federal communications 31 commission. “Tower” includes structures constructed for 32 wireless communications services, including but not limited to 33 private, broadcast, and public safety services and unlicensed 34 wireless services and fixed wireless services, such as 35 -4- HF 655 (4) 86 ad/sc/md 4/ 18

H.F. 655 microwave backhaul, and the associated site. 1 12. “Transmission equipment” means equipment that 2 facilitates transmission for a wireless communications 3 service licensed or authorized by the federal communications 4 commission, including but not limited to radio transceivers, 5 antennas, coaxial or fiberoptic cable, and regular and backup 6 power supply. “Transmission equipment” includes equipment 7 associated with wireless communications services, including but 8 not limited to private, broadcast, and public safety services, 9 such as wireless local area network services and services 10 utilizing a set of specifications developed by the institute 11 of electrical and electronics engineers for interface between 12 a wireless client and a base station or between two wireless 13 clients, as well as unlicensed wireless services and fixed 14 wireless services, such as microwave backhaul. 15 12A. “Utility pole” means a structure owned or operated by 16 a public utility, municipality, or electric utility that is 17 designed specifically for and used to carry lines, cable, or 18 wires for telephone, cable television, or electricity, or to 19 provide lighting. 20 13. “Wireless support structure” means a structure that 21 exists at the time an application is submitted and is capable 22 of supporting the attachment or installation of transmission 23 equipment in compliance with applicable codes, including but 24 not limited to water towers, buildings, and other structures, 25 whether within or outside the public right-of-way. “Wireless 26 support structure” does not include a tower or existing base 27 station. 28 Sec. 3. NEW SECTION . 8C.3 Uniform rules and limitations —— 29 applications. 30 In order to ensure uniformity across this state with respect 31 to the consideration of every application, and notwithstanding 32 any other provision to the contrary, an authority shall not do 33 any of the following: 34 1. Require an applicant to submit information about, or 35 -5- HF 655 (4) 86 ad/sc/md 5/ 18

H.F. 655 evaluate an applicant’s business decisions with respect to, the 1 applicant’s designed service, customer demand for service, or 2 quality of the applicant’s service to or from a particular area 3 or site. 4 2. a. Evaluate an application based on the availability of 5 other potential locations for the placement or construction of 6 a tower or transmission equipment. 7 b. Require the applicant to establish other options for 8 collocation instead of the construction of a new tower or 9 modification of an existing tower or existing base station 10 that constitutes a substantial change to an existing tower or 11 existing base station. 12 c. Notwithstanding paragraph “b” , an authority may require 13 an applicant applying for the construction of a new tower to 14 state in its application that it conducted an analysis of 15 available collocation opportunities on existing towers or 16 existing base stations within the same search ring defined by 17 the applicant solely for the purpose of confirming that the 18 applicant undertook such analysis. 19 3. Dictate the type of transmission equipment or technology 20 to be used by the applicant or discriminate between different 21 types of infrastructure or technology. 22 4. a. Require the removal of existing towers, base 23 stations, or transmission equipment, wherever located, as a 24 condition to approval of an application. 25 b. Notwithstanding paragraph “a” , the authority may adopt 26 reasonable rules regarding removal of abandoned towers or 27 transmission equipment. 28 5. Impose environmental testing, sampling, or monitoring 29 requirements, or other compliance measures, for radio frequency 30 emissions from transmission equipment that are categorically 31 excluded under the federal communications commission’s 32 rules for radio frequency emissions pursuant to 47 C.F.R. 33 §1.1307(b)(1). 34 6. Establish or enforce regulations or procedures for radio 35 -6- HF 655 (4) 86 ad/sc/md 6/ 18

H.F. 655 frequency signal strength or the adequacy of service quality. 1 7. Reject an application, in whole or in part, based on 2 perceived or alleged environmental effects of radio frequency 3 emissions, as provided in 47 U.S.C. §332(c)(7)(B)(iv). 4 8. Prohibit the placement of emergency power systems that 5 comply with federal and state environmental requirements. 6 9. Charge an application fee, consulting fee, or other fee 7 associated with the submission, review, processing, or approval 8 of an application that is not required for similar types of 9 commercial development within the authority’s jurisdiction. 10 Fees imposed by an authority or by a third-party entity 11 providing review or technical consultation to the authority 12 shall be based on actual, direct, and reasonable administrative 13 costs incurred for the review, processing, and approval of an 14 application. In no case shall total charges and fees exceed 15 five hundred dollars for an eligible facilities request or 16 three thousand dollars for an application for a new tower, for 17 the initial placement or installation of transmission equipment 18 on a wireless support structure, for a modification of an 19 existing tower or existing base station that constitutes a 20 substantial change to an existing tower or base station, or any 21 other application to construct or place transmission equipment 22 that does not constitute an eligible facilities request. An 23 authority or any third-party entity shall not include within 24 its charges any travel expenses incurred in the review of an 25 application, and an applicant shall not be required to pay or 26 reimburse an authority for consultant or other third-party fees 27 based on a contingency or result-based arrangement. 28 10. Impose surety requirements, including bonds, 29 escrow deposits, letters of credit, or any other type 30 of financial surety, to ensure that abandoned or unused 31 towers or transmission equipment can be removed unless the 32 authority imposes similar requirements on other applicants 33 for other types of commercial development or land uses. If 34 surety requirements are imposed, the requirements must be 35 -7- HF 655 (4) 86 ad/sc/md 7/ 18

H.F. 655 competitively neutral, nondiscriminatory, reasonable in 1 amount, and commensurate with the historical record for local 2 facilities and structures that are abandoned. 3 11. Condition the approval of an application on the 4 applicant’s agreement to provide space on or near the tower, 5 base station, or wireless support structure for authority or 6 local governmental or nongovernmental services at less than the 7 market rate for such space or to provide other services via the 8 structure or facilities at less than the market rate for such 9 services. 10 12. Limit the duration of the approval of an application, 11 except that construction of the approved structure or 12 facilities shall be commenced within two years of final 13 approval, including the disposition of any appeals, and 14 diligently pursued to completion. 15 13. Discriminate on the basis of the ownership, including 16 ownership by the authority, of any property, structure, or 17 tower when promulgating rules or procedures for siting wireless 18 facilities or for evaluating applications. 19 Sec. 4. NEW SECTION . 8C.4 Uniform rules —— new tower 20 applications. 21 1. An authority may exercise zoning, land use, planning, 22 and permitting authority within the authority’s territorial 23 boundaries with regard to the siting of new towers, subject to 24 the provisions of this chapter and federal law. 25 2. An applicant that proposes to construct a new tower 26 within the jurisdiction of an authority that has adopted 27 planning and zoning regulations shall submit the necessary 28 copies and attachments of the application to the appropriate 29 authority and comply with applicable local ordinances 30 concerning land use and the appropriate permitting processes. 31 3. All records, documents, and electronic data, except 32 the name of the applicant and the location of the proposed 33 project, in the possession or custody of authority personnel 34 shall be considered confidential trade secrets as provided for 35 -8- HF 655 (4) 86 ad/sc/md 8/ 18

H.F. 655 in section 22.7, subsection 3. 1 4. An authority, within one hundred fifty calendar days 2 of receiving an application to construct a new tower, unless 3 another date is specified in a written agreement between the 4 authority and the applicant, shall comply with the following 5 provisions: 6 a. Review the application for conformity with applicable 7 local zoning regulations, building permit requirements, and 8 consistency with this chapter. An application is deemed to 9 be complete unless the authority notifies the applicant in 10 writing, within thirty calendar days of submission of the 11 application, specifying the deficiencies in the application 12 which, if cured, would make the application complete. The 13 authority’s timeframe to review the application is tolled 14 beginning the date the notice is sent. The authority’s 15 timeframe of one hundred fifty days for review of the 16 application begins running again when the applicant cures the 17 specified deficiencies. Following the applicant’s supplemental 18 submission, the authority has ten days to notify the 19 applicant that the supplemental submission did not provide the 20 information identified in the original notice that specified 21 deficiencies in the application. The authority’s timeframe of 22 one hundred fifty days to review the application is tolled in 23 the case of second or subsequent notices in conformance with 24 this paragraph. The authority shall not include deficiencies 25 in a second or subsequent notice that were not delineated in 26 the original notice. The authority’s timeframe for review does 27 not toll if the authority requests information regarding any of 28 the considerations an authority may not consider as described 29 in section 8C.3. 30 b. Make its final decision to approve or disapprove the 31 application. 32 c. Advise the applicant in writing of its final decision. 33 5. If the authority fails to act on an application to 34 construct a new tower within the timeframe for review specified 35 -9- HF 655 (4) 86 ad/sc/md 9/ 18

H.F. 655 under subsection 4, the application shall be deemed approved. 1 6. A party aggrieved by the final action of an authority, 2 either by its affirmative disapproval of an application under 3 the provisions of this section or by its inaction, may bring an 4 action for review in any court of competent jurisdiction. 5 Sec. 5. NEW SECTION . 8C.5 Uniform rules for certain 6 changes. 7 1. An authority may exercise zoning, land use, planning, 8 and permitting authority within the authority’s territorial 9 boundaries with regard to an application for initial placement 10 or installation of transmission equipment on wireless support 11 structures, for modification of an existing tower or existing 12 base station that constitutes a substantial change, or for a 13 request for construction or placement of transmission equipment 14 that does not constitute an eligible facilities request, 15 subject to the provisions of this chapter and federal law. 16 2. An applicant that proposes an initial placement or 17 installation of transmission equipment on wireless support 18 structures, a modification of an existing tower or existing 19 base station that constitutes a substantial change, or a 20 request for construction or placement of transmission equipment 21 that does not constitute an eligible facilities request, within 22 the jurisdiction of an authority that has adopted planning 23 and zoning ordinances, rules, or regulations shall submit the 24 necessary copies and attachments of the application to the 25 authority and comply with such applicable local ordinances, 26 rules, or regulations concerning land use and zoning and the 27 appropriate local permitting processes. 28 3. All records, including but not limited to documents and 29 electronic data, in the possession or custody of authority 30 personnel shall be considered confidential trade secrets as 31 provided for in section 22.7, subsection 3. 32 4. An authority, within ninety calendar days of receiving an 33 application pursuant to subsection 2, unless another date is 34 specified in a written agreement between the authority and the 35 -10- HF 655 (4) 86 ad/sc/md 10/ 18

H.F. 655 applicant, shall comply with the following provisions: 1 a. Review the application for conformity with applicable 2 local zoning ordinances, rules, or regulations, building 3 permit requirements, and consistency with this chapter. An 4 application is deemed to be complete unless the authority 5 notifies the applicant in writing, within thirty calendar 6 days of submission of the application, specifying the 7 deficiencies in the application which, if cured, would make 8 the application complete. The authority’s timeframe for 9 review is tolled beginning the date the notice is sent. The 10 authority’s ninety-day timeframe for review of the application 11 begins running again when the applicant cures the specified 12 deficiencies. Following the applicant’s supplemental 13 submission, the authority has ten days to notify the 14 applicant that the supplemental submission did not provide the 15 information identified in the original notice that specified 16 deficiencies. The authority’s ninety-day timeframe to review 17 the application is tolled in the case of second or subsequent 18 notices in conformance with this paragraph. The authority 19 shall not include deficiencies in a second or subsequent 20 notice that were not delineated in the original notice. The 21 authority’s ninety-day timeframe for review does not toll 22 if the authority requests information regarding any of the 23 considerations an authority may not consider as described in 24 section 8C.3. 25 b. Make its final decision to approve or disapprove the 26 application. 27 c. Advise the applicant in writing of its final decision. 28 5. If the authority fails to act on an application for an 29 initial placement or installation of transmission equipment on 30 wireless support structures, for a modification of an existing 31 tower or existing base station that constitutes a substantial 32 change, or for a request for construction or placement of 33 transmission equipment that does not constitute an eligible 34 facilities request within the review period specified under 35 -11- HF 655 (4) 86 ad/sc/md 11/ 18

H.F. 655 subsection 4, the application shall be deemed approved. 1 6. A party aggrieved by the final action of an authority, 2 either by its affirmative disapproval of an application under 3 the provisions of this section or by its inaction, may bring an 4 action for review in any court of competent jurisdiction. 5 Sec. 6. NEW SECTION . 8C.6 Use of public lands for towers 6 and transmission equipment. 7 1. In accordance with other applicable laws, when entering 8 into a lease with an applicant for the applicant’s use of 9 public lands, an authority shall offer the market rate value 10 for use of that land. The term of the lease shall be for at 11 least twenty years. 12 2. a. If the authority and the applicant cannot agree 13 on the market rate for lease of the public land and cannot 14 agree on the process to derive the market rate, the appraisals 15 of a three-person panel of appraisers shall determine the 16 market rate. Each party will appoint one appraiser and the 17 two appointed appraisers shall select a third appraiser. Each 18 appraiser shall independently appraise the appropriate market 19 rate for lease of the land. The market rate shall be set at 20 the median value between the highest and lowest market rates 21 determined by the three independent appraisers. However, if 22 the median between the appraisals of the appraisers appointed 23 by each party is greater than or less than ten percent of the 24 appraisal of the appraiser selected by the two appraisers, then 25 the appraisal of the appraiser selected by the two appraisers 26 shall determine the rate for the lease. Each appraiser 27 shall send a copy of the appraisal to the authority and the 28 applicant. The authority shall use the appraisal process under 29 this paragraph to determine the lease rate for purposes of this 30 subsection. 31 0b. An authority shall approve or reject the lease rate as 32 determined by the appraisal process pursuant to paragraph “a” 33 within fifteen days following completion and receipt of the 34 appraisals obtained pursuant to paragraph “a” . The authority’s 35 -12- HF 655 (4) 86 ad/sc/md 12/ 18

H.F. 655 failure to reject the lease rate as determined by the appraisal 1 process within fifteen days constitutes approval of the lease 2 rate determined pursuant to paragraph “a” as the market rate 3 value for the use of the land for purposes of the lease between 4 the authority and the applicant. 5 b. The authority and applicant shall conclude the appraisal 6 process within one hundred fifty calendar days from the date 7 the applicant first offered a proposed lease rate to the 8 authority. 9 c. If using the three-person panel, each party shall bear 10 the cost of its own appointed appraiser and equally share the 11 cost of the third appraiser. 12 Sec. 7. NEW SECTION . 8C.7 Utility poles. 13 Notwithstanding any provision to the contrary, an authority 14 shall not mandate, require, or regulate the installation, 15 location, or use of transmission equipment on a utility pole. 16 Sec. 8. NEW SECTION . 8C.8 Application and construction. 17 This chapter shall not be construed as: 18 1. Prohibiting an airport or authority from administering 19 and enforcing airport zoning pursuant to the provisions of 20 chapter 329 for the protection of navigable airspace. 21 2. Infringing upon the jurisdiction of a commission, as 22 defined in section 303.20, to approve or deny applications 23 for proposed alterations to exterior features within an area 24 designated as an area of historical significance. 25 3. Infringing upon the jurisdiction of a city or county, 26 or any other entity authorized by statute, to approve or deny 27 applications for proposed alterations to exterior features of 28 designated local historic landmarks. 29 DIVISION II 30 REINVESTMENT DISTRICTS AND FLOOD MITIGATION 31 Sec. 9. Section 15J.4, subsection 3, paragraph a, Code 2015, 32 is amended to read as follows: 33 a. The municipality shall submit a copy of the resolution, 34 the proposed district plan, and all accompanying materials 35 -13- HF 655 (4) 86 ad/sc/md 13/ 18

H.F. 655 adopted pursuant to this section to the board for evaluation. 1 The board shall not approve a proposed district plan or an 2 amendment to an existing district’s plan on or after July 1, 3 2018. 4 Sec. 10. Section 28F.12, Code 2015, is amended to read as 5 follows: 6 28F.12 Additional powers of the entity. 7 1. If the entity is comprised solely of cities, counties, 8 and sanitary districts established under chapter 358 , or any 9 combination thereof, the entity shall have in addition to all 10 the powers enumerated in this chapter , the powers which that a 11 county has with respect to solid waste disposal projects. 12 2. If the entity is comprised solely of cities, counties, 13 and sanitary districts established under chapter 358, or any 14 combination thereof, it is a governmental entity with respect 15 to projects undertaken pursuant to chapter 418 and may exercise 16 all of the powers of a governmental entity under that chapter 17 in connection with the flood mitigation project. Unless 18 otherwise provided in chapter 418, if undertaking a flood 19 mitigation project as a governmental entity under chapter 20 418, the provisions of chapter 418 shall prevail over any 21 conflicting provision in this chapter. 22 Sec. 11. Section 418.1, subsection 4, paragraph c, 23 unnumbered paragraph 1, Code 2015, is amended to read as 24 follows: 25 A joint board or other legal or administrative entity 26 established or designated in an agreement pursuant to chapter 27 28E or 28F between any of the following: 28 Sec. 12. Section 418.1, subsection 4, paragraph c, Code 29 2015, is amended by adding the following new subparagraph: 30 NEW SUBPARAGRAPH . (4) One or more counties, one or more 31 cities that are located in whole or in part within those 32 counties, and one or more sanitary districts established under 33 chapter 358 or a combined water and sanitary district as 34 provided for in sections 357.1B and 358.1B, located in whole or 35 -14- HF 655 (4) 86 ad/sc/md 14/ 18

H.F. 655 in part within those counties. 1 Sec. 13. Section 418.4, subsection 1, paragraph b, Code 2 2015, is amended to read as follows: 3 b. A governmental entity as defined in section 418.1, 4 subsection 4 , paragraph “c” , shall have the power to construct, 5 acquire, own, repair, improve, operate, and maintain a project, 6 may sue and be sued, contract, and acquire and hold real and 7 personal property, subject to the limitation in paragraph 8 “c” , and shall have such other powers as may be included in 9 the chapter 28E or 28F agreement. Such a governmental entity 10 may contract with a city or the county participating in the 11 chapter 28E agreement to perform any governmental service, 12 activity, or undertaking that the city or county is authorized 13 by law to perform, including but not limited to contracts for 14 administrative services. 15 Sec. 14. Section 418.11, subsection 3, paragraph c, Code 16 2015, is amended to read as follows: 17 c. For projects approved for a governmental entity as 18 defined in section 418.1, subsection 4 , paragraph “c” , the 19 area used to determine the sales tax increment shall include 20 the incorporated areas of each participating city that is 21 participating in the chapter 28E agreement , the unincorporated 22 areas of the each participating county, and the area of any 23 participating drainage district not otherwise included in 24 the areas of the participating cities or county, and the 25 area served by any sanitary district or combined water and 26 sanitary district and not otherwise included in the areas of 27 the participating cities or counties, as applicable. 28 Sec. 15. Section 418.11, subsection 3, Code 2015, is amended 29 by adding the following new paragraph: 30 NEW PARAGRAPH . d. For all projects, the area used to 31 determine the sales tax increment shall not include any parcels 32 of real property that are included in a reinvestment district 33 designated pursuant to chapter 15J. 34 Sec. 16. Section 418.14, subsection 3, paragraph a, Code 35 -15- HF 655 (4) 86 ad/sc/md 15/ 18

H.F. 655 2015, is amended to read as follows: 1 a. Except as otherwise provided in this section , bonds 2 issued pursuant to this section shall not be subject to 3 the provisions of any other law or charter relating to the 4 authorization, issuance, or sale of bonds. Bonds issued under 5 this section shall not limit or restrict the authority of a 6 governmental entity as defined in section 418.1, subsection 4 , 7 paragraphs “a” and “b” , or a city, county, or drainage district , 8 sanitary district, or combined water and sanitary district 9 participating in a governmental entity as defined in section 10 418.1, subsection 4 , paragraph “c” , to issue bonds for the 11 project under other provisions of the Code. 12 Sec. 17. Section 418.14, subsection 4, paragraph b, Code 13 2015, is amended to read as follows: 14 b. If the moneys in the governmental entity’s flood project 15 fund are insufficient to pay the governmental entity’s costs 16 related to bonds, notes, or other obligations issued under 17 this chapter , the amounts necessary to pay such costs may 18 be levied and transferred for deposit in the governmental 19 entity’s flood project fund from the debt service fund of the 20 governmental entity or, if applicable, the debt service fund 21 of a participating city or county for a governmental entity as 22 defined in section 418.1, subsection 4 , paragraph “c” , but only 23 if and to the extent provided in the resolution authorizing the 24 issuance of bonds and, if applicable, the chapter 28E or 28F 25 agreement. 26 Sec. 18. Section 418.15, subsection 4, Code 2015, is amended 27 to read as follows: 28 4. All property and improvements acquired by a governmental 29 entity as defined in section 418.1, subsection 4 , paragraph 30 “c” , relating to a project shall be transferred to the county, 31 city, or drainage district , sanitary district, or combined 32 water and sanitary district designated in the chapter 28E or 33 28F agreement to receive such property and improvements. The 34 county, city, or drainage district , sanitary district, or 35 -16- HF 655 (4) 86 ad/sc/md 16/ 18

H.F. 655 combined water and sanitary district to which such property or 1 improvements are transferred shall, unless otherwise provided 2 in the chapter 28E or 28F agreement, be solely responsible 3 for the ongoing maintenance and support of such property and 4 improvements. 5 Sec. 19. Section 423.2, subsection 11, paragraph b, Code 6 2015, is amended by adding the following new subparagraph: 7 NEW SUBPARAGRAPH . (05) Beginning the first day of the 8 calendar quarter beginning on the reinvestment district’s 9 commencement date, subject to remittance limitations 10 established by the economic development authority board 11 pursuant to section 15J.4, subsection 3, transfer to a district 12 account created in the state reinvestment district fund for 13 each reinvestment district established under chapter 15J, the 14 amount of new state sales tax revenue, determined in section 15 15J.5, subsection 1, paragraph “b” , in the district, that 16 remains after the prior transfers required under this paragraph 17 “b” . Such transfers shall cease pursuant to section 15J.8. 18 Sec. 20. Section 423.2, subsection 11, paragraph b, 19 subparagraph (6), Code 2015, is amended by striking the 20 subparagraph. 21 Sec. 21. Section 423.2, Code 2015, is amended by adding the 22 following new subsection: 23 NEW SUBSECTION . 11A. Of the amount of sales tax revenue 24 actually transferred per quarter pursuant to subsection 11, 25 paragraph “b” , subparagraphs (05) and (5), the department shall 26 retain an amount equal to the actual cost of administering the 27 transfers under subsection 11, paragraph “b” , subparagraphs 28 (05) and (5), or twenty-five thousand dollars, whichever is 29 less. The amount retained by the department pursuant to this 30 subsection shall be divided pro rata each quarter between the 31 amounts that would have been transferred pursuant to subsection 32 11, paragraph “b” , subparagraphs (05) and (5), without the 33 deduction made by operation of this subsection. Revenues 34 retained by the department pursuant to this subsection shall be 35 -17- HF 655 (4) 86 ad/sc/md 17/ 18

H.F. 655 considered repayment receipts as defined in section 8.2. 1 Sec. 22. EFFECTIVE UPON ENACTMENT. This division of this 2 Act, being deemed of immediate importance, takes effect upon 3 enactment. 4 Sec. 23. RETROACTIVE AND OTHER APPLICABILITY. 5 1. Except as provided in subsection 3, this division of this 6 Act applies retroactively to reinvestment districts designated 7 under chapter 15J in existence on or after July 1, 2014. 8 2. Except as provided in subsection 3, this division of 9 this Act applies to flood mitigation project plan applications 10 received under chapter 418 before, on, or after the effective 11 date of this division of this Act. 12 3. The sections of this division of this Act amending 13 section 423.2, subsection 11, and enacting section 423.2, 14 subsection 11A, apply to transfers of sales tax revenues made 15 on or after July 1, 2015. 16 -18- HF 655 (4) 86 ad/sc/md 18/ 18