Bill Text: IA SF2207 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act restricting certain city utility boards from approving payment of bonus compensation to specified officers of the city utility, and including effective date and retroactive applicability provisions.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2016-03-07 - Subcommittee, Taylor, Quirmbach, and Smith. S.J. 443. [SF2207 Detail]

Download: Iowa-2015-SF2207-Introduced.html

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Senate File 2207 - Introduced




                                 SENATE FILE       
                                 BY  CHAPMAN

                                      A BILL FOR

  1 An Act restricting certain city utility boards from approving
  2    payment of bonus compensation to specified officers of the
  3    city utility, and including effective date and retroactive
  4    applicability provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 388.5, Code 2016, is amended to read as
  1  2 follows:
  1  3    388.5  Control of tax revenues.
  1  4    1.  A utility board shall control tax revenues allocated to
  1  5 the city utility, city utilities, or combined utility system it
  1  6 administers and all moneys derived from the operation of the
  1  7 city utility, city utilities, or combined utility system, the
  1  8 sale of utility property, interest on investments, or from any
  1  9 other source related to the city utility, city utilities, or
  1 10 combined utility system.
  1 11    2.  All city utility moneys received must be held in a
  1 12 separate utility fund, with a separate account or accounts
  1 13 for each city utility or combined utility system. If a board
  1 14 administers a municipal utility or combined utility system,
  1 15 moneys may be paid out of that utility account only at the
  1 16 direction of the board.
  1 17    3.  a.  The utility board of a city utility, city utilities,
  1 18 or combined utility system that provides water service shall
  1 19 not in any fiscal year approve the payment of bonuses, in any
  1 20 form, totaling more than one hundred dollars to the chief
  1 21 executive, executive director, general manager, or equivalent
  1 22 officer of the city utility, city utilities, or combined
  1 23 utility system if the board has, pursuant to section 384.84,
  1 24 increased water utility rates by more than one=fourth of
  1 25 one percent in that fiscal year or in any of the previous
  1 26 five fiscal years. All contract provisions, promises,
  1 27 and agreements made by the board of any city utility, city
  1 28 utilities, or combined utility system to or with any such
  1 29 officer that is inconsistent with or contrary to the provisions
  1 30 of this subsection shall be null and void.
  1 31    b.   This subsection applies only to the utility boards of
  1 32 any city utility, city utilities, or combined utility system
  1 33 that provides water service to a city having more than one
  1 34 hundred seventy=five thousand population, as shown by the most
  1 35 recent federal decennial census.
  2  1    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
  2  2 immediate importance, takes effect upon enactment.
  2  3    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies
  2  4 retroactively to fiscal years commencing on or after July 1,
  2  5 2015.
  2  6                           EXPLANATION
  2  7 The inclusion of this explanation does not constitute agreement with
  2  8 the explanation's substance by the members of the general assembly.
  2  9    This bill restricts certain city utility boards from
  2 10 approving payment of bonuses to a specified officer of the city
  2 11 utility.
  2 12    Under the bill, the utility board of a city utility, city
  2 13 utilities, or combined utility system that provides water
  2 14 service to a city with a population greater than 175,000 is
  2 15 prohibited from approving payment of bonuses, in any form,
  2 16 exceeding $100 in any one fiscal year to the utility's chief
  2 17 executive, executive director, general manager, or equivalent
  2 18 officer, if the board has increased water utility rates by more
  2 19 than 0.25 percent in that fiscal year or in any of the previous
  2 20 five fiscal years. The bill provides that all contract
  2 21 provisions, promises, and agreements made by a utility board
  2 22 to or with any such officer approving such a bonus payment are
  2 23 null and void.
  2 24    The bill takes effect upon enactment and applies
  2 25 retroactively to fiscal years commencing on or after July 1,
  2 26 2015.
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