House Study Bill 91 - IntroducedA Bill ForAn Act 1relating to the designation of certain county and city
2activities as essential purposes or general purposes for
3bonding purposes.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 28M.3, unnumbered paragraph 1, Code
22017, is amended to read as follows:
   3A regional transit district shall have all the rights,
4powers, and duties of a county enterprise pursuant to sections
5331.462 through 331.469 as they relate to the purpose for
6which the regional transit district is created, including
7the authority to issue revenue bonds for the establishment,
8construction, reconstruction, repair, equipping, remodeling,
9extension, maintenance, and operation of works, vehicles, and
10facilities of a regional transit district. In addition, a
11regional transit district, with the approval of the board of
12supervisors, may issue general obligation bonds as an essential
13
 a general county purpose pursuant to chapter 331, division IV,
14part 3, for the establishment, construction, reconstruction,
15repair, equipping, remodeling, extension, maintenance, and
16operation of works, vehicles, and facilities of a regional
17transit district. Such general obligation bonds are payable
18from the property tax levy authorized in section 28M.5.
19   Sec. 2.  Section 331.441, subsection 2, paragraph b,
20subparagraphs (13) and (15), Code 2017, are amended by striking
21the subparagraphs.
22   Sec. 3.  Section 331.441, subsection 2, paragraph c, Code
232017, is amended by adding the following new subparagraphs:
24   NEW SUBPARAGRAPH.  (011)  The acquisition, pursuant to a
25chapter 28E agreement, of a city convention center or veterans
26memorial auditorium, including the renovation, remodeling,
27reconstruction, expansion, improvement, or equipping of such a
28center or auditorium, provided that debt service funds shall
29not be derived from the division of taxes under section 403.19.
30   NEW SUBPARAGRAPH.  (0011)  The establishment, construction,
31reconstruction, repair, equipping, remodeling, extension,
32maintenance, and operation of works, vehicles, and facilities
33of a regional transit district.
34   Sec. 4.  Section 384.24, subsection 3, paragraphs b, c,
35f, g, h, i, n, and p, Code 2017, are amended by striking the
-1-1paragraphs.
2   Sec. 5.  Section 384.24, subsection 4, Code 2017, is amended
3by adding the following new paragraphs:
4   NEW PARAGRAPH.  0h.  The reconstruction, extension, and
5improvement of an airport owned or operated by the city, an
6agency of the city, or a multimember governmental body of which
7the city is a participating member.
8   NEW PARAGRAPH.  0i.  The acquisition, construction,
9improvement, and installation of street lighting fixtures,
10connections, and facilities.
11   NEW PARAGRAPH.  00i.  The construction, reconstruction, and
12repair of sidewalks and pedestrian underpasses and overpasses,
13and the acquisition of real estate needed for such purposes.
14   NEW PARAGRAPH.  000i.  The settlement, adjustment, renewal,
15or extension of any part or all of the legal indebtedness of
16a city, whether evidenced by bonds, warrants, or judgments,
17or the funding or refunding of the same, whether or not such
18indebtedness was created for a purpose for which general
19obligation bonds might have been issued in the original
20instance.
21   NEW PARAGRAPH.  0000i.  The undertaking of any project
22jointly or in cooperation with any other governmental body
23which, if undertaken by the city alone, would be for an
24essential corporate purpose, including the joint purchase,
25acquisition, construction, ownership, or control of any real or
26personal property.
27   NEW PARAGRAPH.  00000i.  The acquisition, construction,
28reconstruction, improvement, and extension of works and
29facilities useful for the control and elimination of any
30and all sources of air, water, and noise pollution, and the
31acquisition of real estate needed for such purposes.
32   NEW PARAGRAPH.  000000i.  The acquisition, construction,
33reconstruction, and improvement of all waterways, and real and
34personal property, useful for the protection or reclamation
35of property situated within the corporate limits of cities
-2-1from floods or high waters, and for the protection of property
2in cities from the effects of flood waters, including the
3deepening, widening, alteration, change, diversion, or other
4improvement of watercourses, within or without the city limits,
5the construction of levees, embankments, structures, impounding
6reservoirs, or conduits, and the establishment, improvement,
7and widening of streets, avenues, boulevards, and alleys across
8and adjacent to the project, as well as the development and
9beautification of the banks and other areas adjacent to flood
10control improvements.
11   NEW PARAGRAPH.  0000000i.  The rehabilitation and improvement
12of area television translator systems already owned.
13   Sec. 6.  Section 384.27, subsection 2, Code 2017, is amended
14to read as follows:
   152.  General obligation funding or refunding bonds issued
16for the purposes specified in section 384.24, subsection 3
17
 4, paragraph “f” “000i”, may be exchanged for the evidences
18of the legal indebtedness being funded or refunded, or such
19funding or refunding bonds may be sold in the manner prescribed
20by chapter 75 and the proceeds applied to the payment of such
21indebtedness. Funding or refunding bonds may bear interest
22at the same rate as, or at a higher or lower rate or rates of
23interest than the indebtedness being funded or refunded.
24   Sec. 7.  Section 411.38, subsection 1, paragraph b,
25subparagraph (2), Code 2017, is amended to read as follows:
   26(2)  In the alternative, a city may treat the city’s
27accrued unfunded liability for the terminated system as legal
28indebtedness to the statewide system for the purposes of
29section 384.24, subsection 3 4, paragraph “f” “000i”.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
   33This bill relates to the designation of certain county and
34city activities as essential purposes or general purposes.
   35The bill strikes the portion of the definition of “essential
-3-1county purpose” relating to the acquisition, pursuant to an
2agreement under Code chapter 28E, of a city convention center
3or veterans memorial auditorium and the portion concerning
4certain activities related to a regional transit district. The
5bill also adds those stricken provisions to the definition of
6“general county purpose”. Under Code chapter 331, a county
7board of supervisors may approve the issuance of general
8obligation bonds to carry out an essential county purpose
9without approval by voters at an election, while the issuance
10of general obligation bonds to carry out a general county
11purpose generally requires approval by voters at election.
   12The bill strikes the portions of the definition of
13“essential corporate purpose” relating to the following
14activities and adds them to the definition of “general
15corporate purpose”: (1) reconstruction, extension, and
16improvement of an airport owned or operated by the city,
17an agency of the city, or a multimember governmental
18body of which the city is a participating member; (2)
19acquisition, construction, improvement, and installation of
20street lighting fixtures, connections, and facilities; (3)
21construction, reconstruction, and repair of sidewalks and
22pedestrian underpasses and overpasses, and the acquisition
23of real estate needed for such purposes; (4) settlement,
24adjustment, renewal, or extension of any part or all of the
25legal indebtedness of a city, whether evidenced by bonds,
26warrants, or judgments, or the funding or refunding of the
27same, whether or not such indebtedness was created for a
28purpose for which general obligation bonds might have been
29issued in the original instance; (5) undertaking of any
30project jointly or in cooperation with any other governmental
31body which, if undertaken by the city alone, would be for an
32essential corporate purpose; (6) acquisition, construction,
33reconstruction, improvement, and extension of works and
34facilities useful for the control and elimination of any
35and all sources of air, water, and noise pollution, and the
-4-1acquisition of real estate needed for such purposes; (7)
2acquisition, construction, reconstruction, and improvement
3of all waterways, and real and personal property, useful for
4the protection or reclamation of property situated within the
5corporate limits of cities from floods or high waters, and
6for the protection of property in cities from the effects of
7flood waters; and (8) rehabilitation and improvement of area
8television translator systems already owned.
   9Under Code chapter 384, a city may approve the issuance of
10general obligation bonds to carry out an essential corporate
11purpose without approval by voters at an election, while the
12issuance of general obligation bonds to carry out a general
13corporate purpose generally requires approval by voters at
14election.
   15The bill makes corresponding changes to other provisions
16of law related to activities of cities and counties and by
17operation of law to activities of other local government
18entities.
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