Bill Text: IA HSB225 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill relating to Iowa's urban renewal law by modifying requirements for the annual report prepared by the legislative services agency, establishing restrictions on the use of divided revenues, modifying the methodology for calculating the amount of divided revenues, and including effective date provisions.
Spectrum: Unknown
Status: (Introduced - Dead) 2015-04-07 - Voted - Ways and Means. [HSB225 Detail]
Download: Iowa-2015-HSB225-Introduced.html
House
Study
Bill
225
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SANDS)
A
BILL
FOR
An
Act
relating
to
Iowa’s
urban
renewal
law
by
modifying
1
requirements
for
the
annual
report
prepared
by
the
2
legislative
services
agency,
establishing
restrictions
on
3
the
use
of
divided
revenues,
modifying
the
methodology
for
4
calculating
the
amount
of
divided
revenues,
and
including
5
effective
date
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
331.403,
subsection
3,
paragraph
d,
Code
1
2015,
is
amended
to
read
as
follows:
2
d.
The
legislative
services
agency,
in
consultation
with
3
the
department
of
management,
shall
annually
prepare
a
report
4
for
submission
to
the
governor
and
the
general
assembly
that
5
summarizes
and
analyzes
the
information
contained
in
the
6
reports
submitted
under
this
subsection
,
section
357H.9,
7
subsection
2
,
and
section
384.22,
subsection
2
.
The
report
8
shall
contain
a
list
of
each
county,
city,
or
rural
improvement
9
zone
that
filed
an
annual
report
for
the
most
recently
ended
10
fiscal
year
and
each
such
entity’s
amount
reported
under
11
paragraph
“b”
,
subparagraph
(8),
for
counties
and
rural
12
improvement
zones,
or
section
384.22,
subsection
2,
paragraph
13
“b”
,
subparagraph
(8),
for
cities.
The
report
prepared
by
the
14
legislative
services
agency
shall
be
submitted
not
later
than
15
February
15
following
the
most
recently
ended
fiscal
year
for
16
which
the
reports
were
filed.
17
Sec.
2.
Section
403.5,
subsection
2,
paragraph
b,
18
subparagraph
(1),
Code
2015,
is
amended
to
read
as
follows:
19
(1)
Prior
to
its
approval
of
an
urban
renewal
plan
which
20
provides
for
a
division
of
revenue
pursuant
to
section
403.19
,
21
the
municipality
shall
mail
the
proposed
plan
by
regular
mail
22
to
the
affected
taxing
entities.
The
municipality
shall
23
include
with
the
proposed
plan
notification
of
a
consultation
24
to
be
held
between
the
municipality
and
affected
taxing
25
entities
prior
to
the
public
hearing
on
the
urban
renewal
plan.
26
If
the
proposed
urban
renewal
plan
or
proposed
urban
renewal
27
project
within
the
urban
renewal
area
,
which
plan
or
project
is
28
approved
prior
to
the
effective
date
of
this
Act,
includes
the
29
use
of
taxes
revenue
resulting
from
a
division
of
revenue
taxes
30
under
section
403.19
,
subsection
2,
for
a
public
building,
31
including
but
not
limited
to
a
police
station,
fire
station,
32
administration
building,
swimming
pool,
hospital,
library,
33
recreational
building,
city
hall,
or
other
public
building
34
that
is
exempt
from
taxation,
including
the
grounds
of,
and
35
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the
erection,
equipment,
remodeling,
maintenance,
repair,
or
1
reconstruction
of,
and
additions
or
extensions
to,
such
a
2
building,
the
municipality
shall
include
with
the
proposed
3
plan
notification
an
analysis
of
alternative
development
4
options
and
funding
for
the
urban
renewal
area
or
urban
renewal
5
project
and
the
reasons
such
options
would
be
less
feasible
6
than
the
proposed
urban
renewal
plan
or
proposed
urban
renewal
7
project.
A
copy
of
the
analysis
required
in
this
subparagraph
8
shall
be
included
with
the
urban
renewal
report
required
under
9
section
331.403
or
384.22
,
as
applicable,
and
filed
by
December
10
1
following
adoption
of
the
urban
renewal
plan
or
project.
11
Urban
renewal
plans
and
urban
renewal
projects
approved
on
or
12
after
the
effective
date
of
this
Act
shall
not
include
the
use
13
of
revenue
resulting
from
a
division
of
taxes
under
section
14
403.19,
subsection
2,
for
a
public
building,
including
but
15
not
limited
to
a
police
station,
fire
station,
administration
16
building,
swimming
pool,
hospital,
library,
recreational
17
building,
city
hall,
or
other
public
building
that
is
exempt
18
from
taxation,
including
the
grounds
of,
and
the
erection,
19
equipment,
remodeling,
maintenance,
repair,
or
reconstruction
20
of,
and
additions
or
extensions
to,
such
a
building.
21
Sec.
3.
Section
403.12,
subsection
1,
paragraph
f,
Code
22
2015,
is
amended
to
read
as
follows:
23
f.
Cause
Subject
to
the
limitation
in
section
403.5,
24
subsection
2,
paragraph
“b”
,
subparagraph
(1),
cause
public
25
buildings
and
public
facilities,
including
parks,
playgrounds,
26
and
recreational,
community,
educational,
water,
sewer
or
27
drainage
facilities,
or
any
other
works
which
it
is
otherwise
28
empowered
to
undertake
to
be
furnished;
29
Sec.
4.
NEW
SECTION
.
403.18A
Urban
renewal
area
and
30
division
of
revenue
limitations.
31
1.
Each
municipality
having
an
urban
renewal
area
in
32
existence
on
the
effective
date
of
this
Act
that
is
subject
to
33
a
division
of
revenue
under
section
403.19
that
is
not
limited
34
in
duration
under
either
section
403.17,
subsection
10,
or
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section
403.22,
subsection
5,
shall
be
subject
to
the
assessed
1
value
adjustment
in
subsection
2.
2
2.
a.
For
each
such
urban
renewal
area
described
in
3
subsection
1,
the
urban
renewal
area,
including
all
applicable
4
urban
renewal
plans,
projects,
and
ordinances
providing
5
for
a
division
of
revenue,
shall
continue
in
effect
under
6
this
chapter,
until
such
time
that
the
urban
renewal
area
7
is
dissolved
by
the
municipality
or
until
the
urban
renewal
8
area
terminates
under
the
conditions
of
this
section.
The
9
municipality
may
continue
to
incur
or
issue
additional
costs
10
or
indebtedness
for
such
urban
renewal
area,
including
loans,
11
advances,
and
bonds,
that
qualify
for
payment
from
the
special
12
fund
created
in
section
403.19
on
or
after
the
effective
date
13
of
this
Act
and
until
dissolution
or
termination
of
the
urban
14
renewal
area.
15
b.
Notwithstanding
any
provision
of
this
chapter
to
the
16
contrary,
for
fiscal
years
beginning
on
or
after
July
1,
2016,
17
when
calculating
a
division
of
revenue
for
an
urban
renewal
18
area
described
in
subsection
1
for
which
the
difference
between
19
the
year
of
the
assessment
roll
referred
to
in
section
403.19,
20
subsection
1,
and
the
year
of
the
assessment
roll
used
to
21
calculate
the
total
amount
of
property
taxes
in
the
urban
22
renewal
area
for
the
fiscal
year
in
which
the
taxes
are
due
23
and
payable,
exceeds
twenty
years,
the
assessed
value
of
the
24
taxable
property
in
the
urban
renewal
area
used
to
calculate
25
the
amount
of
taxes
under
section
403.19,
subsection
1,
shall
26
be
increased
by
an
amount
equal
to
seven
and
one-half
percent
27
of
the
assessed
value
of
the
taxable
property
used
to
calculate
28
the
total
amount
of
property
taxes
in
the
urban
renewal
area
29
for
the
fiscal
year
in
which
taxes
are
due
and
payable.
30
Following
the
initial
adjustment
under
this
paragraph,
the
31
assessed
value
of
the
taxable
property
used
to
calculate
the
32
amount
of
taxes
under
section
403.19,
subsection
1,
shall
33
be
further
increased
for
each
subsequent
fiscal
year
by
an
34
amount
equal
to
seven
and
one-half
percent
of
the
assessed
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value
of
the
taxable
property
in
the
urban
renewal
area
used
1
to
calculate
the
total
amount
of
property
taxes
in
the
urban
2
renewal
area
for
the
fiscal
year
in
which
taxes
are
due
and
3
payable,
until
such
time
as
operation
of
this
paragraph
“b”
4
would
cause
the
assessed
value
of
the
taxable
property
used
to
5
calculate
the
amount
of
taxes
under
section
403.19,
subsection
6
1,
to
exceed
the
assessed
value
of
the
taxable
property
in
7
the
urban
renewal
area
used
to
calculate
the
total
amount
of
8
property
taxes
in
the
urban
renewal
area
for
the
fiscal
year
in
9
which
the
taxes
are
due
and
payable,
or
the
twentieth
fiscal
10
year
following
the
fiscal
year
for
which
the
first
adjustment
11
is
made
under
this
section,
whichever
is
earlier,
at
which
time
12
the
urban
renewal
area,
including
all
applicable
urban
renewal
13
plans,
projects,
and
ordinances
providing
for
a
division
of
14
revenue,
shall
terminate
and
be
of
no
further
force
and
effect.
15
3.
The
department
of
management
shall
adopt
rules
pursuant
16
to
chapter
17A
necessary
to
implement
and
administer
this
17
section.
18
Sec.
5.
Section
403.19,
Code
2015,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
3A.
Except
as
provided
in
section
403.22,
21
an
ordinance
providing
for
a
division
of
revenue
under
this
22
section
that
is
adopted
on
or
after
the
effective
date
of
23
this
Act,
including
an
ordinance
providing
for
a
division
24
of
revenue
for
an
economic
development
area
under
section
25
403.17,
subsection
10,
shall
be
limited
to
twenty
years
from
26
the
calendar
year
following
the
calendar
year
in
which
the
27
municipality
first
certifies
to
the
county
auditor
the
amount
28
of
any
loans,
advances,
indebtedness,
or
bonds
that
qualify
for
29
payment
from
the
division
of
revenue
provided
in
this
section.
30
The
urban
renewal
area,
including
all
applicable
urban
renewal
31
plans,
projects,
and
ordinances,
shall
terminate
and
be
of
32
no
further
force
and
effect
following
the
twenty-year
period
33
provided
in
this
subsection.
34
Sec.
6.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
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immediate
importance,
takes
effect
upon
enactment.
1
EXPLANATION
2
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
3
the
explanation’s
substance
by
the
members
of
the
general
assembly.
4
This
bill
relates
to
Iowa’s
urban
renewal
law.
5
The
bill
requires
the
annual
report
prepared
by
the
6
legislative
services
agency,
in
consultation
with
the
7
department
of
management,
under
Code
section
331.403,
to
8
contain
a
list
of
each
county,
city,
or
rural
improvement
zone
9
that
filed
an
annual
report
for
the
most
recently
ended
fiscal
10
year
and
each
such
entity’s
reported
amount
of
loans,
advances,
11
indebtedness,
or
bonds
that
remain
unpaid
at
the
close
of
the
12
fiscal
year,
and
which
qualify
for
payment
from
the
special
13
fund
created
in
Code
section
403.19,
including
interest
14
negotiated
on
such
loans,
advances,
indebtedness,
or
bonds.
15
The
bill
provides
that
urban
renewal
plans
and
urban
16
renewal
projects
approved
on
or
after
the
effective
date
of
17
the
bill
shall
not
include
the
use
of
revenue
resulting
from
18
a
division
of
taxes
for
a
public
building
that
is
exempt
19
from
taxation,
including
the
grounds
of,
and
the
erection,
20
equipment,
remodeling,
maintenance,
repair,
or
reconstruction
21
of,
and
additions
or
extensions
to,
such
a
building.
The
bill
22
also
modifies
provisions
governing
the
use
of
such
revenues
23
for
public
buildings
for
plans
and
projects
approved
before
24
the
effective
date
of
the
bill
to
include
the
maintenance
and
25
repair
of
such
public
buildings.
26
New
Code
section
403.18A
provides
that
each
municipality
27
having
an
urban
renewal
area
in
existence
on
the
effective
28
date
of
the
bill
that
is
subject
to
a
division
of
revenue
that
29
is
not
limited
in
duration
under
either
Code
section
403.17,
30
subsection
10
(20
years)
or
Code
section
403.22,
subsection
5
31
(10
years)
shall
be
subject
to
the
assessed
value
adjustment
32
provided
for
in
the
bill.
Under
the
bill,
when
calculating
a
33
division
of
revenue
for
such
an
urban
renewal
area
for
a
fiscal
34
year
beginning
on
or
after
July
1,
2016,
and
for
which
the
35
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difference
between
the
year
of
the
assessment
roll
referred
1
to
in
Code
section
403.19,
subsection
1,
(establishing
a
base
2
assessed
value),
and
the
year
of
the
assessment
roll
used
3
to
calculate
the
total
amount
of
property
taxes
under
Code
4
section
403.19
for
the
fiscal
year
in
which
the
taxes
are
5
due
and
payable,
exceeds
20
years,
the
assessed
value
of
the
6
taxable
property
in
the
urban
renewal
area
used
to
calculate
7
the
amount
of
taxes
under
Code
section
403.19,
subsection
1,
8
shall
be
increased
by
an
amount
equal
to
7.5
percent
of
the
9
assessed
value
used
to
calculate
the
total
amount
of
property
10
taxes
in
the
urban
renewal
area
for
the
applicable
fiscal
11
year.
Following
the
initial
adjustment,
the
assessed
value
12
of
the
taxable
property
used
to
calculate
the
amount
of
taxes
13
under
Code
section
403.19,
subsection
1,
shall
be
further
14
increased
for
each
subsequent
fiscal
year
by
an
amount
equal
15
to
7.5
percent
of
the
assessed
value
of
the
taxable
property
16
in
the
urban
renewal
area
used
to
calculate
the
total
amount
17
of
property
taxes
for
the
applicable
fiscal
year,
until
18
by
operation
of
the
bill
the
assessed
value
of
the
taxable
19
property
used
to
calculate
the
amount
of
taxes
under
Code
20
section
403.19,
subsection
1,
exceeds
the
assessed
value
of
the
21
taxable
property
in
the
urban
renewal
area
used
to
calculate
22
the
total
amount
of
property
taxes
in
the
urban
renewal
area
23
for
the
fiscal
year
in
which
the
taxes
are
due
and
payable,
or
24
the
twentieth
fiscal
year
following
the
fiscal
year
for
which
25
the
first
adjustment
is
made
under
this
section,
whichever
26
is
earlier,
at
which
time
the
urban
renewal
area,
including
27
all
applicable
urban
renewal
plans,
projects,
and
ordinances
28
providing
for
a
division
of
revenue,
shall
terminate
and
be
of
29
no
further
force
and
effect.
30
The
bill
provides
that
except
for
certain
divisions
of
31
revenue
authorized
for
certain
housing
and
residential
32
development
under
Code
section
403.22,
an
ordinance
providing
33
for
a
division
of
revenue
under
Code
section
403.19
that
is
34
adopted
on
or
after
the
effective
date
of
the
bill
shall
be
35
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limited
to
20
years
from
the
calendar
year
following
the
1
calendar
year
in
which
the
municipality
first
certifies
to
the
2
county
auditor
the
amount
of
any
loans,
advances,
indebtedness,
3
or
bonds
which
qualify
for
payment
from
the
division
of
revenue
4
provided
in
Code
section
403.19.
Under
the
bill,
the
urban
5
renewal
area,
including
all
applicable
urban
renewal
plans,
6
projects,
and
ordinances
shall
terminate
and
be
of
no
further
7
force
and
effect
following
the
20-year
period
provided
in
the
8
bill.
9
The
bill
takes
effect
upon
enactment.
10
-7-
LSB
1171YC
(9)
86
md/sc
7/
7
