Bill Text: IA SF2140 | 2011-2012 | 84th General Assembly | Introduced


Bill Title: A bill for an act relating to Iowa's urban renewal law by modifying provisions relating to the duration of urban renewal areas and ordinances providing for a division of revenue, requiring voter approval for ordinances establishing a division of revenue, and including effective date provisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-02-08 - Subcommittee, Bolkcom, Feenstra, and Quirmbach. S.J. 215. [SF2140 Detail]

Download: Iowa-2011-SF2140-Introduced.html
Senate File 2140 - Introduced SENATE FILE 2140 BY CHELGREN A BILL FOR An Act relating to Iowa’s urban renewal law by modifying 1 provisions relating to the duration of urban renewal 2 areas and ordinances providing for a division of revenue, 3 requiring voter approval for ordinances establishing 4 a division of revenue, and including effective date 5 provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5918XS (3) 84 md/sc
S.F. 2140 Section 1. Section 403.17, subsection 10, Code 2011, is 1 amended to read as follows: 2 10. “Economic development area” means an area of a 3 municipality designated by the local governing body as 4 appropriate for commercial and industrial enterprises, public 5 improvements related to housing and residential development, 6 or construction of housing and residential development for low 7 and moderate income families, including single or multifamily 8 housing. If an urban renewal plan for an urban renewal area 9 adopted on or after January 1, 1995, but before the effective 10 date of this Act, is based upon a finding that the area is an 11 economic development area and that no part contains slum or 12 blighted conditions, then the division of revenue provided 13 in section 403.19 , if adopted prior to the effective date of 14 this Act, and stated in the plan shall be limited to twenty 15 years from the calendar year following the calendar year in 16 which the municipality first certifies to the county auditor 17 the amount of any loans, advances, indebtedness, or bonds which 18 qualify for payment from the division of revenue provided in 19 section 403.19 . Such designated An economic development area 20 shall not include agricultural land, including land which is 21 part of a century farm, unless the owner of the agricultural 22 land or century farm agrees to include the agricultural land 23 or century farm in the urban renewal area. For the purposes of 24 this subsection , “century farm” means a farm in which at least 25 forty acres of such farm have been held in continuous ownership 26 by the same family for one hundred years or more. 27 Sec. 2. Section 403.19, Code Supplement 2011, is amended by 28 adding the following new subsections: 29 NEW SUBSECTION . 2A. An ordinance adopted by a municipality 30 on or after the effective date of this Act providing for 31 a division of revenue under this section shall not become 32 effective within the boundaries of a school district or 33 effective against any property tax levied by any public body 34 on real property within the boundaries of that school district 35 -1- LSB 5918XS (3) 84 md/sc 1/ 4
S.F. 2140 unless approved by the voters of the school district at the 1 next general election. The ordinance shall be submitted by 2 the governing body of the municipality on its own motion to 3 the voters of each school district located in whole or in part 4 within the area proposed to be subject to the division of 5 revenue. If a majority of those voting on the question within 6 the school district approves the ordinance, the ordinance shall 7 become effective within the boundaries of the school district 8 that has approved the ordinance and shall, subject to the 9 limitations of subsection 2, be effective against all property 10 taxes levied by any public body on real property within the 11 boundaries of that school district. Notice of the election 12 shall be given by publication as prescribed in section 49.53 13 in a newspaper of general circulation within each local school 14 district where voting is to occur. 15 NEW SUBSECTION . 2B. Except as provided in section 403.22, 16 an ordinance providing for a division of revenue under this 17 section that is adopted on or after the effective date of 18 this Act shall be limited to twenty years from the calendar 19 year following the calendar year in which the municipality 20 first certifies to the county auditor the amount of any 21 loans, advances, indebtedness, or bonds, which qualify for 22 payment from the division of revenue. The urban renewal 23 area, including all applicable urban renewal plans, projects, 24 and ordinances shall terminate and be of no further force 25 and effect following the twenty-year period provided in this 26 subsection. 27 NEW SUBSECTION . 2C. An ordinance providing for a division 28 of revenue in effect on the effective date of this Act that is 29 not limited in duration under either section 403.17, subsection 30 10, or section 403.22, subsection 5, shall terminate and be 31 of no further force and effect not later than June 30, 2032. 32 The urban renewal area, including all applicable urban renewal 33 plans, projects, and ordinances, shall terminate and be of no 34 further force and effect on the date the division of revenue 35 -2- LSB 5918XS (3) 84 md/sc 2/ 4
S.F. 2140 ordinance terminates under this subsection. 1 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 2 immediate importance, takes effect upon enactment. 3 EXPLANATION 4 This bill provides that an ordinance adopted by a 5 municipality on or after the effective date of the bill 6 providing for a division of revenue under Code section 403.19 7 (tax increment financing) shall not become effective within 8 the boundaries of a school district or effective against 9 any property tax levied by any public body on real property 10 within the boundaries of that school district unless approved 11 by the voters of the school district at the next general 12 election. Under the bill, if a majority of those voting on the 13 question within the school district approves the ordinance, 14 the ordinance shall become effective within the boundaries of 15 the school district that has approved the ordinance and shall 16 be effective against all property taxes levied by any public 17 body on real property within the boundaries of that school 18 district, except those levies excluded under current Code 19 section 403.19(2). 20 The bill provides that except for certain divisions of 21 revenue for public improvements related to housing and 22 residential development, an ordinance providing for a division 23 of revenue that is adopted on or after the effective date 24 of the bill is limited to 20 years from the calendar year 25 following the calendar year in which the municipality first 26 certifies to the county auditor the amount of any loans, 27 advances, indebtedness, or bonds, which qualify for payment 28 from the division of revenue. Following the expiration of the 29 20-year limitation period, the urban renewal area, including 30 all applicable urban renewal plans, projects, and ordinances 31 shall terminate and be of no further force and effect. 32 The bill also provides that a division of revenue ordinance 33 in effect on the effective date of the bill that is not limited 34 in duration under either Code section 403.17(10)(20-year 35 -3- LSB 5918XS (3) 84 md/sc 3/ 4
S.F. 2140 limitation), or Code section 403.22(5)(10-year limitation), 1 shall terminate and be of no further force and effect not 2 later than June 30, 2032. The urban renewal area, including 3 all applicable urban renewal plans, projects, and ordinances, 4 related to such ordinance shall terminate and be of no further 5 force and effect on the date the division of revenue ordinance 6 terminates. 7 The bill takes effect upon enactment. 8 -4- LSB 5918XS (3) 84 md/sc 4/ 4
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