Bill Text: IA HF2456 | 2013-2014 | 85th General Assembly | Enrolled

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Bill Title: A bill for an act relating to the approval and imposition of the facilities property tax levy and the equipment replacement and program sharing property tax levy for a merged area and including effective date and applicability provisions. Vetoed.

Spectrum: Committee Bill

Status: (Vetoed) 2014-05-30 - Vetoed by Governor. H.J. 899. [HF2456 Detail]

Download: Iowa-2013-HF2456-Enrolled.html

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House File 2456
AN ACT
RELATING TO THE APPROVAL AND IMPOSITION OF THE FACILITIES
PROPERTY TAX LEVY AND THE EQUIPMENT REPLACEMENT AND PROGRAM
SHARING PROPERTY TAX LEVY FOR A MERGED AREA AND INCLUDING
EFFECTIVE DATE AND APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 260C.15, subsection 1, Code 2014, is
amended to read as follows:
1. Regular elections held by the merged area for the
election of members of the board of directors as required by
section 260C.11 or for any other matter authorized by law and
designated for election by the board of directors of the merged
area, shall be held on the date of the school election as fixed
by section 277.1 . However, elections held for the renewal
imposition, rate increase, or discontinuance of the twenty and
one-fourth cents per thousand dollars of assessed valuation
levy authorized in section 260C.22 shall be held either on the
date of the school election as fixed by section 277.1 or at a
special election held on the second Tuesday in September of
the even-numbered year. The election notice shall be made a
part of the local school election notice published as provided
in section 49.53 in each local school district where voting is
to occur in the merged area election and the election shall be
conducted by the county commissioner of elections pursuant to
chapters 39 through 53 and section 277.20 .
Sec. 2. Section 260C.22, subsection 1, paragraphs a and b,
Code 2014, are amended to read as follows:
a. In addition to the tax authorized under section 260C.17
and upon resolution of the board of directors , the voters
in a merged area may at the regular school election or at a

House File 2456, p. 2
special election held on the second Tuesday in September of
the even-numbered year vote a tax not exceeding twenty and
one-fourth cents per thousand dollars of assessed value in any
one year for a period not to exceed ten years , unless otherwise
provided under subsection 2, for the purchase of grounds,
construction of buildings, payment of debts contracted for the
construction of buildings, purchase of buildings and equipment
for buildings, and the acquisition of libraries, for the
purpose of paying costs of utilities, and for the purpose of
maintaining, remodeling, improving, or expanding the community
college of the merged area. If the tax levy is approved under
this section , the costs of utilities shall be paid from the
proceeds of the levy. The tax shall be collected by the county
treasurers and remitted to the treasurer of the merged area as
provided in section 331.552, subsection 29 . The proceeds of
the tax shall be deposited in a separate and distinct fund to
be known as the voted tax fund, to be paid out upon warrants
drawn by the president and secretary of the board of directors
of the merged area district for the payment of costs incurred
in providing the school facilities for which the tax was voted
authorized .
b. In order to make immediately available to the merged
area the proceeds of the voted tax hereinbefore authorized to
be levied under this section , the board of directors of any
such merged area is hereby authorized, without the necessity
for any further election, to borrow money and enter into loan
agreements in anticipation of the collection of such tax,
and such board shall, by resolution, provide for the levy
of an annual tax, within the limits of the special voted
tax hereinbefore authorized under this section , sufficient
to pay the amount of any such loan and the interest thereon
to maturity as the same becomes due. A certified copy of
this resolution shall be filed with the county auditors of
the counties in which such merged area is located, and the
filing thereof shall make it a duty of such auditors to enter
annually this levy for collection until funds are realized
to repay the loan and interest thereon in full. Said loan
must mature within the number of years for which the tax has
been voted and shall bear interest at a rate or rates not
exceeding that permitted by chapter 74A . Any loan agreement
entered into pursuant to authority herein contained shall be
in such form as the board of directors shall by resolution
provide and the loan shall be payable as to both principal and

House File 2456, p. 3
interest from the proceeds of the annual levy of the voted tax
hereinbefore authorized under this section , or so much thereof
as will be sufficient to pay the loan and interest thereon. In
furtherance of the foregoing the board of directors of such
merged area may, with or without notice, negotiate and enter
into a loan agreement or agreements with any bank, investment
banker, trust company, insurance company or group thereof,
whereunder the borrowing of the necessary funds may be assured
and consummated. The proceeds of such loan shall be deposited
in a special fund, to be kept separate and apart from all other
funds of the merged area, and shall be paid out upon warrants
drawn by the president and secretary of the board of directors
to pay the cost of acquiring the school facilities for which
the tax was voted authorized .
Sec. 3. Section 260C.22, subsections 2 and 3, Code 2014,
are amended by striking the subsections and inserting in lieu
thereof the following:
2. Following approval of the tax at two consecutive
elections under subsection 1 where the question of imposing
the tax appeared on the ballot, if the tax has been imposed
for a period of at least twenty consecutive years, the board
of directors of the merged area may, by resolution adopted at
any time before the end of the most recently authorized period
of time for imposing the tax, continue to impose the voted tax
each year for an additional period not to exceed ten years at
a rate not to exceed the maximum rate approved at election
until the tax is discontinued or the maximum rate is increased
following an election pursuant to subsection 3. An increase
in the maximum rate of the voted tax, not to exceed the maximum
rate specified in subsection 1, shall be approved at election
pursuant to the requirements of subsection 3.
3. A voted tax imposed under this section may be
discontinued, or its maximum rate increased, by petition and
election. Upon receipt of a petition containing the required
number of signatures, the board of directors of a merged area
shall direct the county commissioner of elections responsible
under section 47.2 for conducting elections in the merged area
to submit to the voters of the merged area the question of
whether to discontinue the authority of the board of directors
to impose the voted tax under this section or to increase the
maximum rate of the voted tax, whichever is applicable. The
petition must be signed by eligible electors equal in number to
not less than twenty-five percent of the votes cast at the last

House File 2456, p. 4
preceding election in the merged area where the question of
the imposition of the tax appeared on the ballot and received
by the board of directors by June 1 of the year in which the
election is to be held. The question shall be submitted at
an election held on a date authorized for an election under
subsection 1, paragraph “a” . If a majority of those voting
on the question of discontinuance of the board of directors’
authority to impose the tax favors discontinuance, the board
shall not impose the tax for any fiscal year beginning after
expiration of the period of time for imposing the tax approved
at the last election under subsection 1 or the period of
time for imposing the tax established by resolution of the
board under subsection 2 that is in effect on the date the
petition for the election is filed with the board, whichever
is applicable, unless following discontinuance the voted tax
is again authorized at election under subsection 1. If the
question of whether to discontinue the authority of the board
of directors to impose the tax fails to gain approval at
election, the question shall not be submitted to the voters of
the merged area for a period of ten years following the date of
the election. If a majority of those voting on the question to
increase the maximum rate of the voted tax favors the proposed
increase, the new maximum rate shall apply to fiscal years
beginning after the date of the election.
Sec. 4. Section 260C.22, subsection 4, Code 2014, is amended
by striking the subsection.
Sec. 5. Section 260C.28, subsection 3, Code 2014, is amended
to read as follows:
3. a. If the board of directors wishes to certify for a
levy under subsection 2 , the board shall direct the county
commissioner of elections to submit the question of such
authorization for the board at an election held on a date
specified in section 39.2, subsection 4 , paragraph “c” . If a
majority of those voting on the question at the election favors
authorization of the board to make such a levy, the board
may certify for a levy as provided under subsection 2 during
each of the ten years following the election , unless otherwise
authorized under paragraph “b” . If a majority of those voting
on the question at the election does not favor authorization
of the board to make a levy under subsection 2 , the board may
submit the question to the voters again at an election held on
a date specified in section 39.2, subsection 4 , paragraph “c” .
b. Following approval of the additional tax authorized

House File 2456, p. 5
under subsection 2 at two consecutive elections under paragraph
“a” where the question of imposing the additional tax appeared
on the ballot, if the additional tax has been imposed for a
period of at least twenty consecutive years and either the
period of time for imposing the additional tax approved at the
last election under paragraph “a” or the period of time for
imposing the tax established previously by resolution under
this paragraph “b” is due to expire, the board of directors
of the merged area may, by resolution, continue to impose the
additional tax each year for an additional period not to exceed
ten years at a rate not to exceed the maximum rate authorized
under subsection 2, until the tax is discontinued following an
election pursuant to paragraph “c” .
c. The additional tax authorized under subsection 2 may
be discontinued by petition and election. Upon receipt of a
petition containing the required number of signatures, the
board of directors of a merged area shall direct the county
commissioner of elections responsible under section 47.2 for
conducting elections in the merged area to submit to the voters
of the merged area the question of whether to discontinue the
authority of the board of directors to impose the additional
tax under subsection 2. The petition must be signed by
eligible electors equal in number to not less than twenty-five
percent of the votes cast at the last preceding election in
the merged area where the question of the imposition of the
additional tax appeared on the ballot. The question shall
be submitted at an election held on a date specified in
section 39.2, subsection 4, paragraph “c” . If a majority of
those voting on the question of discontinuance of the board
of directors’ authority to impose the additional tax favors
discontinuance, the board shall not impose the additional
tax for any fiscal year beginning after the expiration of
the period of time for imposing the tax approved at the last
election under paragraph “a” or the period of time for imposing
the additional tax established by resolution of the board under
paragraph “b” that is in effect on the date the petition for
the election is filed with the board, whichever is applicable,
unless following discontinuance the additional tax is again
authorized at election under paragraph “a” . If the question
of whether to discontinue the authority of the board of
directors to impose the additional tax fails to gain approval
at election, the question shall not be submitted to the voters
of the merged area for a period of ten years following the date

House File 2456, p. 6
of the election.
Sec. 6. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
immediate importance, takes effect upon enactment.
Sec. 7. APPLICABILITY.
1. This Act applies to merged area voted taxes under section
260C.22 in effect on the effective date of this Act and merged
area voted taxes approved at election under section 260C.22 on
or after the effective date of this Act.
2. This Act applies to merged area taxes under section
260C.28, subsections 2 and 3, in effect on the effective date
of this Act and merged area taxes approved at election under
section 260C.28, subsection 3, on or after the effective date
of this Act.
______________________________
KRAIG PAULSEN
Speaker of the House
______________________________
PAM JOCHUM
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2456, Eighty-fifth General Assembly.
______________________________
CARMINE BOAL
Chief Clerk of the House
Approved _______________, 2014
______________________________
TERRY E. BRANSTAD
Governor