Bill Text: IA HSB675 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill relating to Iowa's urban renewal law by establishing restrictions on the use of divided revenues, establishing restrictions on the issuance of certain bonds and indebtedness, modifying the methodology for calculating the amount of divided revenues, and including effective date provisions.
Spectrum: Unknown
Status: (N/A - Dead) 2014-03-18 - In Ways and Means [HSB675 Detail]
Download: Iowa-2013-HSB675-Introduced.html
House
Study
Bill
675
-
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
establishing
1
restrictions
on
the
use
of
divided
revenues,
establishing
2
restrictions
on
the
issuance
of
certain
bonds
and
3
indebtedness,
modifying
the
methodology
for
calculating
the
4
amount
of
divided
revenues,
and
including
effective
date
5
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
403.5,
subsection
2,
paragraph
b,
1
subparagraph
(1),
Code
2014,
is
amended
to
read
as
follows:
2
(1)
Prior
to
its
approval
of
an
urban
renewal
plan
which
3
provides
for
a
division
of
revenue
pursuant
to
section
403.19
,
4
the
municipality
shall
mail
the
proposed
plan
by
regular
mail
5
to
the
affected
taxing
entities.
The
municipality
shall
6
include
with
the
proposed
plan
notification
of
a
consultation
7
to
be
held
between
the
municipality
and
affected
taxing
8
entities
prior
to
the
public
hearing
on
the
urban
renewal
plan.
9
If
For
urban
renewal
plans
and
urban
renewal
projects
approved
10
before
the
effective
date
of
this
Act,
if
the
proposed
urban
11
renewal
plan
or
proposed
urban
renewal
project
within
the
urban
12
renewal
area
includes
the
use
of
taxes
revenue
resulting
from
a
13
division
of
revenue
taxes
under
section
403.19
,
subsection
2,
14
for
a
public
building,
including
but
not
limited
to
a
police
15
station,
fire
station,
administration
building,
swimming
16
pool,
hospital,
library,
recreational
building,
city
hall,
or
17
other
public
building
that
is
exempt
from
taxation,
including
18
the
grounds
of,
and
the
erection,
equipment,
remodeling,
or
19
reconstruction
of,
and
additions
or
extensions
to,
such
a
20
building,
the
municipality
shall
include
with
the
proposed
21
plan
notification
an
analysis
of
alternative
development
22
options
and
funding
for
the
urban
renewal
area
or
urban
renewal
23
project
and
the
reasons
such
options
would
be
less
feasible
24
than
the
proposed
urban
renewal
plan
or
proposed
urban
renewal
25
project.
A
copy
of
the
analysis
required
in
this
subparagraph
26
shall
be
included
with
the
urban
renewal
report
required
under
27
section
331.403
or
384.22
,
as
applicable,
and
filed
by
December
28
1
following
adoption
of
the
urban
renewal
plan
or
project.
29
Urban
renewal
plans
and
urban
renewal
projects
approved
on
or
30
after
the
effective
date
of
this
Act
shall
not
include
the
use
31
of
revenue
resulting
from
a
division
of
taxes
under
section
32
403.19,
subsection
2,
for
a
public
building,
including
but
33
not
limited
to
a
police
station,
fire
station,
administration
34
building,
swimming
pool,
hospital,
library,
recreational
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building,
city
hall,
or
other
public
building
that
is
exempt
1
from
taxation,
including
the
grounds
of,
and
the
erection,
2
equipment,
remodeling,
or
reconstruction
of,
and
additions
or
3
extensions
to,
such
a
building.
4
Sec.
2.
Section
403.9,
subsection
2,
Code
2014,
is
amended
5
to
read
as
follows:
6
2.
a.
Bonds
issued
under
this
section
shall
not
constitute
7
an
indebtedness
within
the
meaning
of
any
constitutional
or
8
statutory
debt
limitation
or
restriction,
and
shall
not
be
9
subject
to
the
provisions
of
any
other
law
or
charter
relating
10
to
the
authorization,
issuance
or
sale
of
bonds.
Bonds
issued
11
under
the
provisions
of
this
chapter
are
declared
to
be
issued
12
for
an
essential
public
and
governmental
purpose
and,
together
13
with
interest
thereon
and
income
therefrom,
shall
be
exempted
14
from
all
taxes.
15
b.
A
municipality
shall
not
issue
bonds
or
incur
16
indebtedness
under
this
chapter
or
under
another
provision
of
17
law
that
qualifies
for
payment
from
the
special
fund
created
18
in
section
403.19,
except
for
refunding
or
refinancing
of
19
bonds
or
indebtedness
that
does
not
result
in
an
increase
in
20
the
municipality’s
total
outstanding
indebtedness
payable
from
21
the
special
fund
created
in
section
403.19,
if
the
sum
of
22
the
municipality’s
outstanding
indebtedness
payable
from
the
23
special
fund
created
in
section
403.19
plus
any
outstanding
24
indebtedness
of
the
municipality
that
is
subject
to
the
debt
25
limitation
of
Article
XI,
section
3,
of
the
Constitution
of
the
26
State
of
Iowa
and
that
does
not
qualify
for
payment
from
the
27
special
fund
created
in
section
403.19
exceeds
an
amount
equal
28
to
five
percent
of
the
value
of
the
taxable
property
within
the
29
municipality.
30
Sec.
3.
Section
403.12,
subsection
1,
paragraph
f,
Code
31
2014,
is
amended
to
read
as
follows:
32
f.
Cause
Subject
to
the
limitation
in
section
403.5,
33
subsection
2,
paragraph
“b”
,
subparagraph
(1),
cause
public
34
buildings
and
public
facilities,
including
parks,
playgrounds,
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and
recreational,
community,
educational,
water,
sewer
or
1
drainage
facilities,
or
any
other
works
which
it
is
otherwise
2
empowered
to
undertake
to
be
furnished;
3
Sec.
4.
NEW
SECTION
.
403.18A
Urban
renewal
area
and
4
division
of
revenue
limitations.
5
1.
Each
municipality
having
an
urban
renewal
area
in
6
existence
on
the
effective
date
of
this
Act
that
is
subject
7
to
a
division
of
revenue
under
section
403.19
that
is
not
8
limited
in
duration
under
either
section
403.17,
subsection
9
10,
or
section
403.22,
subsection
5,
shall
be
subject
to
the
10
limitation
in
subsection
2.
11
2.
a.
For
each
such
urban
renewal
area
described
in
12
subsection
1,
the
urban
renewal
area,
including
all
applicable
13
urban
renewal
plans,
projects,
and
ordinances
providing
14
for
a
division
of
revenue,
shall
continue
in
effect
under
15
this
chapter,
until
such
time
that
the
urban
renewal
area
16
is
dissolved
by
the
municipality
or
until
the
urban
renewal
17
area
terminates
under
the
conditions
of
paragraph
“b”
.
The
18
municipality
may
continue
to
incur
or
issue
additional
costs
19
or
indebtedness
for
such
urban
renewal
area,
including
loans,
20
advances,
and
bonds,
that
qualify
for
payment
from
the
special
21
fund
created
in
section
403.19
on
or
after
the
effective
date
22
of
this
Act
and
until
dissolution
or
termination
of
the
urban
23
renewal
area.
24
b.
Notwithstanding
any
provision
of
this
chapter
to
the
25
contrary,
for
fiscal
years
beginning
on
or
after
July
1,
2015,
26
when
calculating
a
division
of
revenue
for
an
urban
renewal
27
area
described
in
subsection
1,
and
for
which
the
difference
28
between
the
year
of
the
assessment
roll
as
of
January
1
used
to
29
calculate
the
amount
of
taxes
allocated
to
and
when
collected
30
paid
into
the
funds
for
the
respective
taxing
districts
under
31
section
403.19,
subsection
1,
and
the
year
of
the
assessment
32
roll
used
to
calculate
the
total
amount
of
property
taxes
under
33
section
403.19
for
the
fiscal
year
in
which
the
taxes
are
34
due
and
payable,
first
exceeds
twenty
years,
the
year
of
the
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assessment
roll
as
of
January
1
that
is
otherwise
required
to
1
be
used
under
section
403.19,
subsection
1,
shall
be
adjusted
2
by
increasing
the
year
of
the
assessment
roll
by
two
assessment
3
years.
The
year
of
the
assessment
roll
used
shall
be
further
4
increased
in
each
subsequent
fiscal
year
by
two
assessment
5
years
until
the
assessment
roll
as
of
January
1
used
to
6
calculate
the
amount
of
taxes
allocated
to
and
when
collected
7
paid
into
the
funds
for
the
respective
taxing
districts
under
8
section
403.19,
subsection
1,
is
later
in
time
than
the
year
9
of
the
assessment
roll
used
to
calculate
the
total
amount
of
10
property
taxes
under
section
403.19
for
the
fiscal
year
in
11
which
the
taxes
are
due
and
payable,
at
which
time
the
urban
12
renewal
area,
including
all
applicable
urban
renewal
plans,
13
projects,
and
ordinances
providing
for
a
division
of
revenue,
14
shall
terminate
and
be
of
no
further
force
and
effect.
15
3.
The
department
of
management
shall
adopt
rules
necessary
16
to
implement
and
administer
this
section.
17
Sec.
5.
Section
403.19,
Code
2014,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
3A.
Except
as
provided
in
section
403.22,
20
an
ordinance
providing
for
a
division
of
revenue
under
this
21
section
that
is
adopted
on
or
after
the
effective
date
of
22
this
Act
shall
be
limited
to
twenty
years
from
the
calendar
23
year
following
the
calendar
year
in
which
the
municipality
24
first
certifies
to
the
county
auditor
the
amount
of
any
loans,
25
advances,
indebtedness,
or
bonds
that
qualify
for
payment
from
26
the
division
of
revenue
provided
in
section
403.19.
The
urban
27
renewal
area,
including
all
applicable
urban
renewal
plans,
28
projects,
and
ordinances,
shall
terminate
and
be
of
no
further
29
force
and
effect
following
the
twenty-year
period
provided
in
30
this
subsection.
31
Sec.
6.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
32
immediate
importance,
takes
effect
upon
enactment.
33
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
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the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
relates
to
Iowa’s
urban
renewal
law.
2
The
bill
provides
that
urban
renewal
plans
and
urban
renewal
3
projects
approved
on
or
after
the
effective
date
of
the
bill
4
shall
not
include
the
use
of
revenue
resulting
from
a
division
5
of
taxes
for
a
public
building,
including
but
not
limited
to
a
6
police
station,
fire
station,
administration
building,
swimming
7
pool,
hospital,
library,
recreational
building,
city
hall,
or
8
other
public
building
that
is
exempt
from
taxation,
including
9
the
grounds
of,
and
the
erection,
equipment,
remodeling,
or
10
reconstruction
of,
and
additions
or
extensions
to,
such
a
11
building.
12
The
bill
strikes
provisions
of
Code
section
403.9
relating
13
to
whether
the
bonds
issued
under
that
Code
section
constitute
14
indebtedness
for
purposes
of
constitutional
and
statutory
debt
15
limitations.
The
bill
also
provides
that
a
municipality
shall
16
not
issue
bonds
or
incur
indebtedness
under
Code
chapter
403
17
or
under
another
provision
of
law
that
qualifies
for
payment
18
from
the
municipality’s
special
fund
created
under
Code
section
19
403.19,
with
some
exceptions,
if
the
sum
of
the
municipality’s
20
outstanding
urban
renewal
indebtedness
plus
any
outstanding
21
indebtedness
of
the
municipality
that
is
subject
to
the
debt
22
limitation
in
Article
XI,
section
3,
of
the
Iowa
Constitution
23
and
not
payable
from
the
municipality’s
special
fund
exceeds
an
24
amount
equal
to
5
percent
of
the
value
of
the
taxable
property
25
within
the
municipality.
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
31
5
(10
years)
shall
be
subject
to
the
limitation
provided
for
32
in
the
bill.
Under
the
bill,
when
calculating
a
division
33
of
revenue
for
such
an
urban
renewal
area,
and
for
which
34
the
difference
between
the
year
of
the
assessment
roll
as
of
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January
1
used
to
calculate
the
amount
of
taxes
allocated
to
1
and
when
collected
paid
into
the
funds
for
the
respective
2
taxing
districts
under
Code
section
403.19,
subsection
1,
3
and
the
year
of
the
assessment
roll
used
to
calculate
the
4
total
amount
of
property
taxes
under
Code
section
403.19
5
for
the
fiscal
year
in
which
the
taxes
are
due
and
payable,
6
first
exceeds
20
years,
the
year
of
the
assessment
roll
as
of
7
January
1
that
is
otherwise
required
under
Code
section
403.19,
8
subsection
1,
shall
be
adjusted
by
increasing
the
year
of
the
9
assessment
roll
by
two
assessment
years.
Under
the
bill,
the
10
year
of
the
assessment
roll
used
shall
be
further
increased
in
11
each
subsequent
fiscal
year
by
two
assessment
years
until
the
12
assessment
roll
as
of
January
1
used
to
calculate
the
amount
13
of
taxes
allocated
to
and
when
collected
paid
into
the
funds
14
for
the
respective
taxing
districts
under
Code
section
403.19,
15
subsection
1,
is
later
in
time
than
the
year
of
the
assessment
16
roll
used
to
calculate
the
total
amount
of
property
taxes
under
17
Code
section
403.19
for
the
fiscal
year
in
which
the
taxes
are
18
due
and
payable,
at
which
time
the
urban
renewal
area
including
19
all
applicable
urban
renewal
plans,
projects,
and
ordinances
20
providing
for
a
division
of
revenue
shall
terminate
and
be
of
21
no
further
force
and
effect.
22
The
bill
provides
that
except
for
certain
divisions
of
23
revenue
authorized
for
certain
housing
and
residential
24
development
under
Code
section
403.22,
an
ordinance
providing
25
for
a
division
of
revenue
under
Code
section
403.19
that
is
26
adopted
on
or
after
the
effective
date
of
the
bill
shall
be
27
limited
to
20
years
from
the
calendar
year
following
the
28
calendar
year
in
which
the
municipality
first
certifies
to
the
29
county
auditor
the
amount
of
any
loans,
advances,
indebtedness,
30
or
bonds
which
qualify
for
payment
from
the
division
of
revenue
31
provided
in
Code
section
403.19.
Under
the
bill,
the
urban
32
renewal
area,
including
all
applicable
urban
renewal
plans,
33
projects,
and
ordinances
shall
terminate
and
be
of
no
further
34
force
and
effect
following
the
20-year
period
provided
in
the
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