Bill Text: IA SF128 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to the establishment, operation, and dissolution of rural improvement zones.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-02-04 - Subcommittee, Quirmbach, Bisignano, and Sinclair. S.J. 214. [SF128 Detail]
Download: Iowa-2015-SF128-Introduced.html
Senate File 128 - Introduced SENATE FILE BY ROZENBOOM A BILL FOR 1 An Act relating to the establishment, operation, and 2 dissolution of rural improvement zones. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1632XS (8) 86 md/sc PAG LIN 1 1 Section 1. Section 357H.1, subsection 1, Code 2015, is 1 2 amended to read as follows: 1 3 1. The board of supervisors of a county with less than 1 4 twenty thousand residents, not counting persons admitted or 1 5 committed to an institution enumerated in section 218.1 or 1 6 904.102, based upon the2000most recent certified federal 1 7 census, and with a private lake developmentshallmay designate 1 8 an area surrounding the lake, if it is an unincorporated 1 9 area of the county, a rural improvement zone upon receipt of 1 10 a petition pursuant to section 357H.2, and upon the board's 1 11 determination that the area is in need of improvements. 1 12 Sec. 2. Section 357H.1, subsection 2, Code 2015, is amended 1 13 by adding the following new paragraph: 1 14 NEW PARAGRAPH. c. "Lake" means a body of water that has 1 15 a surface area of at least eighty acres and is not a river or 1 16 stream. 1 17 Sec. 3. Section 357H.2, subsection 1, unnumbered paragraph 1 18 1, Code 2015, is amended to read as follows: 1 19 The board shall, on the petition of twenty=five percent 1 20 of the residents of a proposed rural improvement zone who 1 21 own a homestead within the proposed rural improvement zone 1 22 that is eligible for the credit under chapter 425 at the 1 23 time the petition is filed, and if the assessed valuation of 1 24 the property owned by the petitioners represents at least 1 25 twenty=five percent of the total assessed value of the proposed 1 26 zone, hold a public hearing concerning the establishment of 1 27 a proposed zone. The petition shall include a statement 1 28 containing the following information: 1 29 Sec. 4. Section 357H.2, subsection 1, paragraph a, Code 1 30 2015, is amended to read as follows: 1 31 a. The need for the proposed zone., including all of the 1 32 following which shall be based upon a report prepared by a 1 33 licensed professional engineer: 1 34 (1) Surface area of the lake in acres. 1 35 (2) Number of acres of land comprising the lake's watershed. 2 1 (3) Soil classification of the land comprising the lake's 2 2 watershed. 2 3 (4) Description of all current land uses within the lake's 2 4 watershed. 2 5 (5) Estimate of historical annual silt accumulation for the 2 6 lake. 2 7 (6) Estimate of the amount of silt currently accumulated in 2 8 the lake. 2 9 (7) Estimates of annual silt accumulation in the lake for 2 10 the twenty=year period following establishment of the rural 2 11 improvement zone. 2 12 (8) Estimate of existing space available to the proposed 2 13 zone for storage of dredged and removed silt. 2 14 (9) Estimate of storage space that will be required to store 2 15 dredged and removed silt from the lake for the twenty=year 2 16 period following establishment of the rural improvement zone. 2 17 (10) Estimate of the cost to effectively address erosion 2 18 control for the twenty=year period following establishment of 2 19 the rural improvement zone. 2 20 Sec. 5. Section 357H.3, Code 2015, is amended to read as 2 21 follows: 2 22 357H.3 Time of public hearing. 2 23 1.TheIf the petition substantially meets the requirements 2 24 of section 357H.2, the public hearing required in section 2 25 357H.2 shall be held withinthirtysixty days of the 2 26 presentation of the petition. Notice of hearing shall be 2 27 given by publication as provided in section 331.305. Holding 2 28 a public hearing pursuant to this section is not dispositive 2 29 of the approval or denial of a petition by the board under this 2 30 chapter. 2 31 2. If the board determines that the petition does not 2 32 substantially meet the requirements of section 357H.2, the 2 33 board may, within thirty days of presentation of the petition, 2 34 request additional information from the petitioners. The 2 35 board's request for additional information shall be limited 3 1 to the information required under section 357H.2 that was not 3 2 contained in the petition. The board shall be limited to one 3 3 request for additional information under this section. Upon 3 4 presentation of the additional information, the public hearing 3 5 required in section 357H.2 shall be held within sixty days of 3 6 receiving the additional information. Notice of hearing shall 3 7 be given in the same manner as required under subsection 1. 3 8 Sec. 6. Section 357H.4, Code 2015, is amended to read as 3 9 follows: 3 10 357H.4 Hearing on petition ==== action by board. 3 11 1. At the public hearingrequired in section 357H.3,3 12 the board may consider the boundaries of a proposed rural 3 13 improvement zone, whether the boundaries shall be as described 3 14 in the petition or otherwise, and for that purpose may amend 3 15 the petition and change the boundaries of the proposed zone as 3 16 stated in the petition. The board may adjust the boundaries 3 17 of a proposed zone as needed to exclude land that has no 3 18 reasonable likelihood of benefit from inclusion in a rural 3 19 improvement zone. However, the boundaries of a proposed zone 3 20 shall not be changed to incorporate property which is not 3 21 included in the original petition. 3 22 2. Within ten days after the hearing, the board shall 3 23 establish the rural improvement zone by resolution or disallow 3 24 the petition. However, the zone shall not include any area 3 25 which is part of an urban renewal area under chapter 403. 3 26 Sec. 7. Section 357H.8, subsection 2, Code 2015, is amended 3 27 to read as follows: 3 28 2. Certificates may be issued with respect to a single 3 29 improvement project or multiple projects and may contain 3 30 terms or conditions as the board of trustees may provide by 3 31 resolution authorizing the issuance of the certificates. 3 32 However, certificates, including those to refund other 3 33 certificates under subsection 3, shall not be issued 3 34after January 1, 2007, except to refund other certificates 3 35 as provided in subsection 3if the maturity date of the 4 1 certificate is after the date the rural improvement zone is 4 2 authorized to operate under section 357H.10. 4 3 Sec. 8. Section 357H.9, subsection 1, Code 2015, is amended 4 4 to read as follows: 4 5 1. The board of trustees shall provide by resolution that 4 6 taxes levied on the taxable property in a rural improvement 4 7 zone each year by or for the benefit of the state, city, 4 8 county, school district, or other taxing district after the 4 9 effective date of the resolution shall be divided as provided 4 10 in section 403.19, subsections 1 and 2, in the same manner 4 11 as if the taxable property in the rural improvement zone was 4 12 taxable property in an urban renewal area and the resolution 4 13 was an ordinance within the meaning of those subsections. The 4 14 taxes received by the board of trustees shall be allocated to, 4 15 and when collected be paid into, a special fund and may be 4 16 irrevocably pledged by the trustees to pay the principal of and 4 17 interest on the certificates, contracts, or other obligations 4 18 approved by the board of trustees to finance or refinance, in 4 19 whole or in part, an improvement project. However, for fiscal 4 20 years beginning on or after July 1, 2015, when calculating 4 21 the amount of taxes subject to the division of taxes, if 4 22 the assessed value of the taxable property in the rural 4 23 improvement zone used to calculate the amount of taxes under 4 24 section 403.19, subsection 1, is less than fifty percent of the 4 25 assessed value of the taxable property in the rural improvement 4 26 zone used to calculate the total amount of property taxes in 4 27 the rural improvement zone for the fiscal year in which the 4 28 taxes are due and payable, the assessed value of the taxable 4 29 property in the rural improvement zone used to calculate the 4 30 amount of taxes under section 403.19, subsection 1, shall be 4 31 increased for that fiscal year until the amount is equal to 4 32 fifty percent of the assessed value of the taxable property in 4 33 the rural improvement zone used to calculate the total amount 4 34 of property taxes in the rural improvement zone for the fiscal 4 35 year in which the taxes are due and payable. In addition, upon 5 1 the board's approval of each extension of the rural improvement 5 2 zone's dissolution date under section 357H.10, subsection 2, 5 3 paragraph "b", the year of the assessment roll as of January 5 4 1 used to calculate the amount of taxes allocated to and 5 5 when collected paid into the funds for the respective taxing 5 6 districts under section 403.19, subsection 1, shall be adjusted 5 7 by increasing the year of the assessment roll by ten assessment 5 8 years. As used in this section, "taxes" includes but is not 5 9 limited to all levies on an ad valorem basis upon land or real 5 10 property located in the rural improvement zone. 5 11 Sec. 9. NEW SECTION. 357H.9A Annual financial report ==== 5 12 audit. 5 13 1. Not later than December 1 of each year on forms and 5 14 pursuant to the instructions prescribed by the department 5 15 of management, the board of trustees shall file with the 5 16 county auditor an annual financial report showing the rural 5 17 improvement zone's financial condition as of June 30 and the 5 18 results of operations for the year then ended. 5 19 2. A rural improvement zone is subject to annual audit by 5 20 the auditor of state. In lieu of an audit by the auditor of 5 21 state, the rural improvement zone may contract with or employ 5 22 a certified public accountant to conduct the audit pursuant 5 23 to the applicable terms and conditions prescribed by sections 5 24 11.6, 11.14, 11.19, and 11.41. The audit format shall be as 5 25 prescribed by the auditor of state. The rural improvement zone 5 26 shall pay all expenses incurred by the auditor of state in 5 27 conducting an audit under this section. 5 28 Sec. 10. Section 357H.10, Code 2015, is amended to read as 5 29 follows: 5 30 357H.10 Dissolution of zone. 5 31 1.ThePrior to the date required for dissolution under 5 32 subsection 2, a rural improvement zoneshallmay be dissolved 5 33 upon the adoption of a resolution of the board of trustees 5 34 which specifies that all improvements have been made in the 5 35 zone, the need for the zone, as identified under section 6 1 357H.2, subsection 1, has been satisfied, and all indebtedness 6 2 has been paid. 6 3 2. a. Each rural improvement zone is dissolved on the day 6 4 four years after the effective date of this Act or twenty years 6 5 from the first day of the calendar year following the calendar 6 6 year in which the rural improvement zone first certifies to the 6 7 county auditor the amount of any loans, advances, indebtedness, 6 8 or bonds that qualify for payment from the division of taxes, 6 9 whichever date is later. 6 10 b. The date required under this subsection for dissolution 6 11 of a rural improvement zone may be extended by resolution of 6 12 the board adopted not less than eighteen months prior to the 6 13 date required for dissolution under paragraph "a" or a date 6 14 not less than eighteen months prior to the date to which the 6 15 rural improvement zone was previously extended by the board 6 16 under this subsection. Each extension approved by the board 6 17 under this subsection shall be for a period not to exceed 6 18 ten years. However, the date required for dissolution of a 6 19 rural improvement zone may only be extended two times under 6 20 the provisions of this paragraph. Prior to approval of an 6 21 extension by the board under this subsection, all of the 6 22 following requirements shall be met: 6 23 (1) Not less than thirty=six months prior to the date 6 24 required for dissolution, the board of trustees shall request 6 25 in writing that the board review the zone's dissolution date. 6 26 Upon receipt of the board of trustees' request, the board shall 6 27 within three months notify the board of trustees in writing 6 28 of the board's intent or lack of intent to review the zone's 6 29 dissolution date. 6 30 (2) Following receipt of the board's notice of intent to 6 31 review and not less than twenty=four months prior to the date 6 32 required for dissolution, the board of trustees shall submit to 6 33 the board a report prepared by a licensed professional engineer 6 34 that includes the information required under section 357H.2, 6 35 subsection 1, paragraph "a". 7 1 (3) Not less than thirty and not more than seventy=five 7 2 days after receiving the report required under subparagraph 7 3 (2), the board shall hold a public hearing to determine the 7 4 continued need for the rural improvement zone. Notice of 7 5 hearing shall be given by publication as provided in section 7 6 331.305. Holding a public hearing pursuant to this section is 7 7 not dispositive of the approval or denial of a request for an 7 8 extension of a zone's dissolution date. 7 9 3. Upon dissolution of the zone, all assets shall be deeded 7 10 to a nonprofit corporation whose members are property owners 7 11 of the improvement zone. 7 12 4. Upon dissolution of the zone, the collection of the 7 13 property tax authorized under section 357H.8, subsection 4, and 7 14 the division of taxes authorized under section 357H.9 shall 7 15 cease immediately. 7 16 EXPLANATION 7 17 The inclusion of this explanation does not constitute agreement with 7 18 the explanation's substance by the members of the general assembly. 7 19 This bill relates to the establishment, operation, and 7 20 dissolution of rural improvement zones under Code chapter 357H. 7 21 Current law provides that the population threshold for 7 22 establishing a rural improvement zone is determined using 7 23 the 2000 certified federal census. The bill changes that 7 24 requirement so that the population is determined using the 7 25 most recent certified federal census. The bill also adds a 7 26 definition of "lake" for purposes of determining eligibility to 7 27 establish a rural improvement zone. The bill defines "lake" 7 28 to mean a body of water that has a surface area of at least 80 7 29 acres and is not a river or stream. 7 30 Current Code section 357H.1 provides that a board of 7 31 supervisors of a county meeting specified population 7 32 requirements shall designate an area surrounding the lake, if 7 33 it is an unincorporated area of the county, a rural improvement 7 34 zone upon receipt of a petition, and upon the board's 7 35 determination that the area is in need of improvements. This 8 1 bill strikes "shall" from that provision and inserts "may". 8 2 The bill provides that as part of the approval process 8 3 for a rural improvement zone, the petition must include 8 4 a statement of the need for the proposed zone including 8 5 specified information based upon a report prepared by a 8 6 licensed professional engineer. The information required to be 8 7 included relates to the size of the lake, soil classification, 8 8 silt accumulation data and estimates, and cost estimates. 8 9 In addition, the petition must be signed by 25 percent of 8 10 the residents of a proposed rural improvement zone who own 8 11 a homestead within the proposed zone that is eligible for 8 12 the homestead credit under Code chapter 425 at the time the 8 13 petition is filed. Current law requires that the petitioners 8 14 be residents of the proposed rural improvement zone. 8 15 The bill changes the period of time required for holding 8 16 a public hearing on the petition from within 30 days of 8 17 presentation of the petition to within 60 days. In addition, 8 18 the bill provides that if the board of supervisors determines 8 19 that the petition does not substantially meet the statutory 8 20 requirements, the board may, within 30 days of presentation 8 21 of the petition, request additional information from the 8 22 petitioners. The board's request for additional information is 8 23 limited to the statutorily required information that was not 8 24 contained in the petition. The bill limits the board to one 8 25 request for additional information. Upon presentation of the 8 26 additional information, the public hearing must be held within 8 27 60 days of receiving the additional information. 8 28 The bill specifies that holding a public hearing relating 8 29 to the establishment of a rural improvement zone is not 8 30 dispositive of the approval or denial of a petition by the 8 31 board. 8 32 The bill strikes the provision which prohibited the issuance 8 33 of certificates for the payment of a rural improvement zone's 8 34 improvements and activities after January 1, 2007, and provides 8 35 that such certificates, including those to refund other 9 1 certificates, may not be issued if the maturity date of the 9 2 certificate is after the date the rural improvement zone is 9 3 authorized to operate, as provided by the bill. 9 4 Current Code section 357H.9 authorizes rural improvement 9 5 zones to authorize the use of taxes from a division of taxes 9 6 (tax increment financing). The bill provides that for fiscal 9 7 years beginning on or after July 1, 2015, when calculating 9 8 the amount of taxes subject to the division of taxes, if the 9 9 assessed value of the taxable property in the rural improvement 9 10 zone used to calculate the amount of taxes to be paid to the 9 11 other taxing districts (base value) is less than 50 percent 9 12 of the assessed value of the taxable property in the rural 9 13 improvement zone used to calculate the total amount of property 9 14 taxes in the rural improvement zone for the fiscal year in 9 15 which the taxes are due and payable, the assessed value of 9 16 the taxable property in the rural improvement zone used to 9 17 calculate the amount of taxes to be paid to the other taxing 9 18 districts (base value) shall be increased for that fiscal 9 19 year to an amount equal to 50 percent of the assessed value 9 20 of the taxable property in the rural improvement zone used 9 21 to calculate the total amount of property taxes in the rural 9 22 improvement zone for the fiscal year in which the taxes are 9 23 due and payable. In addition, upon the board of supervisors' 9 24 approval of each extension of the rural improvement zone's 9 25 dissolution date, as provided in the bill, the year of the 9 26 assessment roll used to calculate the amount of taxes to be 9 27 paid to the other taxing districts is adjusted by increasing 9 28 the year of the assessment roll by 10 assessment years. 9 29 The bill provides that not later than December 1 of each 9 30 year the board of trustees of a zone shall file with the 9 31 county auditor an annual financial report showing the rural 9 32 improvement zone's financial condition as of June 30 and the 9 33 results of operations for the year then ended. The bill also 9 34 provides that all rural improvement zones are subject to annual 9 35 audit either by the auditor of state or by a certified public 10 1 accountant contracted with or employed by the rural improvement 10 2 zone to conduct the audit. 10 3 The bill provides that each rural improvement zone is 10 4 dissolved on the date four years after the effective date of 10 5 the bill or 20 years from the first day of the calendar year 10 6 following the calendar year in which the rural improvement 10 7 zone first certifies to the county auditor for payment from 10 8 the division of taxes, whichever is later. The bill further 10 9 provides that the date required for dissolution may be extended 10 10 by resolution of the board of supervisors adopted not less 10 11 than 18 months prior to the date required for dissolution or 10 12 a date not less than 18 months prior to the date to which 10 13 the rural improvement zone was previously extended by the 10 14 board of supervisors under the provisions of the bill. Each 10 15 extension shall be for a period not to exceed 10 years. The 10 16 date required for dissolution of a rural improvement zone 10 17 may only be extended two times under the provisions of the 10 18 bill. Prior to an extension, the board of trustees must 10 19 request in writing a review of the zone's dissolution date 10 20 by the board of supervisors, the board of supervisors must 10 21 notify the board of trustees in writing of the board's intent 10 22 to review or not to review the zone's dissolution date, and, 10 23 if the board intends to review, the board of trustees must 10 24 submit a report prepared by a licensed professional engineer 10 25 that includes the information required in the petition seeking 10 26 establishment of the zone, and the board of supervisors must 10 27 hold a public hearing to determine the continued need for the 10 28 rural improvement zone. The bill specifies that holding a 10 29 public hearing relating to the extension of a rural improvement 10 30 zone's dissolution date is not dispositive of the approval or 10 31 denial of such an extension. LSB 1632XS (8) 86 md/sc
