Bill Text: IA SF2217 | 2011-2012 | 84th General Assembly | Enrolled

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Bill Title: A bill for an act relating to flood mitigation by establishing a flood mitigation program, establishing a flood mitigation board, authorizing the use of certain sales tax revenue and other financial assistance for flood mitigation projects, establishing a flood mitigation fund, authorizing the issuance of bonds for certain flood mitigation projects, providing for appropriations, and including effective date provisions. (Formerly SSB 3130.) Effective 4-19-12.

Spectrum: Committee Bill

Status: (Passed) 2012-04-19 - Signed by Governor. S.J. 835. [SF2217 Detail]

Download: Iowa-2011-SF2217-Enrolled.html

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Senate File 2217
AN ACT
RELATING TO FLOOD MITIGATION BY ESTABLISHING A FLOOD MITIGATION
PROGRAM, ESTABLISHING A FLOOD MITIGATION BOARD, AUTHORIZING
THE USE OF CERTAIN SALES TAX REVENUE AND OTHER FINANCIAL
ASSISTANCE FOR FLOOD MITIGATION PROJECTS, ESTABLISHING A
FLOOD MITIGATION FUND, AUTHORIZING THE ISSUANCE OF BONDS
FOR CERTAIN FLOOD MITIGATION PROJECTS, PROVIDING FOR
APPROPRIATIONS, AND INCLUDING EFFECTIVE DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 29C.8, subsection 3, Code Supplement
2011, is amended by adding the following new paragraph:
NEW PARAGRAPH . h. Carry out duties related to the flood
mitigation program and the flood mitigation board under chapter
418.
Sec. 2. Section 331.430, subsection 2, Code 2011, is amended
by adding the following new paragraph:
NEW PARAGRAPH . d. Payments authorized to be made from the
debt service fund to a flood project fund under section 418.14,
subsection 4.
Sec. 3. Section 384.4, subsection 1, Code 2011, is amended
by adding the following new paragraph:
NEW PARAGRAPH . e. Payments authorized to be made from the
debt service fund to a flood project fund under section 418.14,
subsection 4.
Sec. 4. NEW SECTION . 418.1 Definitions.
For purposes of this chapter, unless the context otherwise
requires:
1. “Base year” means the fiscal year ending during the
calendar year in which the governmental entity’s project is
approved by the board under section 418.9.

Senate File 2217, p. 2
2. “Board” means the flood mitigation board as created in
section 418.5.
3. “Division” means the homeland security and emergency
management division of the department of public defense.
4. “Governmental entity” means any of the following:
a. A county.
b. A city.
c. A joint board or other legal or administrative entity
established or designated in an agreement pursuant to chapter
28E between any of the following:
(1) Two or more cities located in whole or in part within
the same county.
(2) A county and one or more cities that are located in
whole or in part within the county.
(3) A county, one or more cities that are located in whole
or in part within the county, and a drainage district formed by
mutual agreement under section 468.142 located in whole or in
part within the county.
5. “Project” means the construction and reconstruction
of levees, embankments, impounding reservoirs, or conduits
that are necessary for the protection of property from the
effects of floodwaters and may include the deepening, widening,
alteration, change, diversion, or other improvement of
watercourses if necessary for the protection of such property
from the effects of floodwaters. A project may consist of
one or more phases of construction or reconstruction that are
contracted for separately if the larger project, of which the
project is a part, otherwise meets the requirements of this
subsection.
6. “Retail establishment” means a business operated by a
retailer as defined in section 423.1.
7. “Sales tax” means the sales and services tax imposed
pursuant to section 423.2.
Sec. 5. NEW SECTION . 418.4 Projects.
1. a. A governmental entity may use the moneys in its flood
project fund established pursuant to section 418.13 to fund
projects that meet the requirements of this section.
b. A governmental entity as defined in section 418.1,
subsection 4, paragraph “c” , shall have the power to construct,
acquire, own, repair, improve, operate, and maintain a project,
may sue and be sued, contract, and acquire and hold real and
personal property, subject to the limitation in paragraph “c” ,
and such other powers as may be included in the chapter 28E

Senate File 2217, p. 3
agreement. Such a governmental entity may contract with a city
or the county participating in the chapter 28E agreement to
perform any governmental service, activity, or undertaking that
the city or county is authorized by law to perform, including
but not limited to contracts for administrative services.
c. A governmental entity’s authority, established under
paragraph “b” or other provision of law, to acquire or hold real
and personal property shall for the purposes of undertaking
a project under this chapter be limited to acquiring and
holding that portion of such property which is necessary for
infrastructure related to flood mitigation.
2. Prior to undertaking a project, the governmental entity
shall adopt a project plan. The project plan shall include
a detailed description of the project, including all phases
of construction or reconstruction included in the project,
state the estimated cost of the project and the maximum amount
of debt to be incurred for purposes of funding the project,
and include a detailed description of all anticipated funding
sources for the project, including information relating to
either the proposed use of financial assistance from the flood
mitigation fund under section 418.10 or the proposed use of
sales tax increment revenues received under section 418.12.
The project plan shall also include information related to the
approval criteria in section 418.9, subsection 2.
3. A governmental entity shall not award a contract for
the construction or reconstruction of or otherwise undertake
construction or reconstruction of a project under this chapter
unless all of the following conditions are met:
a. Bidding for the project has been completed. A
governmental entity shall comply with the competitive bid
procedures in chapter 26 for the bidding and construction of
the project and shall comply with the provisions of chapter
573.
b. For projects proposing to use sales tax increment
revenues or approved by the board to use sales tax increment
revenues, the project, or an earlier phase of the project, has
been approved to receive financial assistance in an amount
equal to at least twenty percent of the total project cost or
thirty million dollars, whichever is less, under the federal
Water Resources Development Act or other federal program
providing assistance specifically for hazard mitigation.
c. The project plan has been approved by the board under
section 418.9.

Senate File 2217, p. 4
d. Following approval of the project plan by the board,
the governmental entity has adopted a resolution authorizing
the use of sales tax increment revenue from the governmental
entity’s flood project fund, if sales tax increment revenue
was approved by the board as a funding source for the project.
Within ten days of adoption, the governmental entity shall
provide a copy of the resolution to the department of revenue.
4. A governmental entity shall not seek approval from the
board for a project if the governmental entity previously
had a project approved pursuant to section 418.9 or if the
governmental entity previously was part of a governmental
entity as defined in section 418.1, subsection 4, paragraph “c”,
that had a project approved pursuant to section 418.9.
5. If a project is eligible for state financial assistance
under section 29C.6, subsection 17, such project is ineligible
for approval by the board under this chapter.
6. Following approval of a project under section 418.9, the
governmental entity shall on or before December 15 of each year
submit a report to the board detailing all of the following:
a. The current status of the project.
b. Total expenditures and the types of expenditures that
have been made related to the project.
c. The amount of the total project cost remaining as of the
date the report is submitted.
d. The amounts, types, and sources of funding being used.
e. The amount of bonds issued or other indebtedness incurred
for the project, including information related to the rate of
interest, length of term, costs of issuance, and net proceeds.
The report shall also include the amounts and types of moneys
used for payment of such bonds or indebtedness.
7. A governmental entity may contract with a council of
governments to perform any duty or power authorized under this
chapter or for the completion of a project.
Sec. 6. NEW SECTION . 418.5 Flood mitigation board.
1. The flood mitigation board is established consisting of
nine voting members and four ex officio, nonvoting members, and
is located for administrative purposes within the division.
The administrator of the division shall provide office space,
staff assistance, and necessary supplies and equipment for
the board. The administrator shall budget funds to pay the
necessary expenses of the board. In performing its functions,
the board is performing a public function on behalf of the
state and is a public instrumentality of the state.

Senate File 2217, p. 5
2. The voting membership of the board shall include all of
the following:
a. Four members of the general public. Two general public
members shall have demonstrable experience or expertise in
the field of natural disaster recovery and two general public
members shall have demonstrable experience or expertise in the
field of flood mitigation.
b. The director of the department of natural resources or
the director’s designee.
c. The secretary of agriculture or the secretary’s designee.
d. The treasurer of state or the treasurer’s designee.
e. The administrator of the division or the administrator’s
designee.
f. The executive director of the Iowa finance authority or
the executive director’s designee.
3. The general public members shall be appointed by
the governor, subject to confirmation by the senate. The
appointments shall comply with sections 69.16 and 69.16A.
4. The chairperson and vice chairperson of the board shall
be designated by the governor from the board members listed
in subsection 2. In case of the absence or disability of the
chairperson and vice chairperson, the members of the board
shall elect a temporary chairperson by a majority vote of those
members who are present and voting.
5. The members appointed under subsection 2, paragraph
“a” , shall be appointed to three-year staggered terms and the
terms shall commence and end as provided by section 69.19. If
a vacancy occurs, a successor shall be appointed to serve the
unexpired term. A successor shall be appointed in the same
manner and subject to the same qualifications as the original
appointment.
6. The board’s ex officio membership shall include four
members of the general assembly with one each appointed by
the majority leader of the senate, the minority leader of the
senate, the speaker of the house of representatives, and the
minority leader of the house of representatives. A legislative
member serves for a term as provided in section 69.16B in an ex
officio, nonvoting capacity and is eligible for per diem and
expenses as provided in section 2.10.
7. A majority of the board constitutes a quorum.
Sec. 7. NEW SECTION . 418.6 Expenses of board members.
The voting members of the board are entitled to receive
reimbursement for actual expenses incurred while engaged in the

Senate File 2217, p. 6
performance of official duties. A member of the board is not
eligible to receive the additional expense allowance provided
in section 7E.6, subsection 2.
Sec. 8. NEW SECTION . 418.7 Division duties.
The division, subject to approval by the board, shall
adopt administrative rules pursuant to chapter 17A necessary
to administer the flood mitigation program. The division
shall provide the board with assistance in implementing
administrative functions and providing technical assistance and
application assistance to applicants under the program.
Sec. 9. NEW SECTION . 418.8 Flood mitigation program.
1. The board shall establish and the division, subject
to direction and approval by the board, shall administer a
flood mitigation program to assist governmental entities
in undertaking projects approved under this chapter. The
flood mitigation program shall include projects approved
by the board to utilize either financial assistance from
the flood mitigation fund created under section 418.10 or
sales tax revenues remitted to the governmental entity under
section 418.12. A governmental entity shall not be approved
by the board to utilize both financial assistance from the
flood mitigation fund and sales tax revenues remitted to the
governmental entity.
2. The board shall, by rules adopted under section
418.7, prescribe application instructions, forms, and other
requirements deemed necessary to operate the flood mitigation
program.
3. The board may contract with or otherwise consult with the
Iowa flood center, established under section 466C.1, to assist
the board in administering the flood mitigation program.
4. The board shall submit a written report to the governor
and the general assembly on or before January 15 of each year.
The report shall include information relating to all projects
approved by the board for inclusion in the flood mitigation
program, the status of such projects, summaries of each report
submitted to the board under section 418.4, subsection 6,
information relating to the types of funding being used for
each approved project, including all indebtedness incurred by
the applicable governmental entities, and any recommendations
for legislative action to modify the provisions of this
chapter.
Sec. 10. NEW SECTION . 418.9 Project application review.
1. a. A governmental entity shall submit an application

Senate File 2217, p. 7
to the board for approval of a project plan. The board shall
not approve a project for inclusion in the program if the
application is submitted after January 1, 2016.
b. The application shall specify whether the governmental
entity is requesting financial assistance from the flood
mitigation fund or approval for the use of sales tax revenues.
Applications for financial assistance from the flood mitigation
fund shall describe the type and amount of assistance
requested. Applications for the use of sales tax revenues
shall state the amount of sales tax revenues necessary for
completion of the project.
2. Each application shall include or have attached to
the application, the governmental entity’s project plan
adopted under section 418.4, subsection 2. When reviewing
applications, in addition to the project plan, the board shall
consider, at a minimum, all of the following:
a. Whether the project is designed to mitigate future
flooding of property that has sustained significant flood
damage and is likely to sustain significant flood damage in the
future.
b. Whether the project plan addresses the impact of flooding
both upstream and downstream from the area where the project
is to be undertaken and whether the project conforms to any
applicable floodplain ordinance.
c. Whether the area that would benefit from the project’s
flood mitigation efforts is sufficiently valuable to the
economic viability of the state or is of sufficient historic
value to the state to justify the cost of the project.
d. The extent to which the project would utilize local
matching funds. The board shall not approve a project unless
at least fifty percent of the total cost of the project, less
any federal financial assistance for the project, is funded
using local matching funds, and unless the project will result
in nonpublic investment in the governmental entity’s area as
defined in section 418.11, subsection 3, of an amount equal to
fifty percent of the total cost of the project. For purposes
of this paragraph, “nonpublic investment” means investment
by nonpublic entities consisting of capital investment or
infrastructure improvements occurring in anticipation of or as
a result of the project during the period of time between July
1, 2008, and ten years after the board approved the project.
e. The extent of nonfinancial support committed to the
project from public and nonpublic sources.

Senate File 2217, p. 8
f. Whether the project is designed in coordination with
other watershed management measures adopted by the governmental
entity or adopted by the participating jurisdictions of the
governmental entity, as applicable.
g. Whether the project plan is consistent with the
applicable comprehensive, countywide emergency operations plan
in effect and other applicable local hazard mitigation plans.
h. Whether financial assistance through the flood mitigation
program is essential to meet the necessary expenses or serious
needs of the governmental entity related to flood mitigation.
3. If requested by the board during consideration of
an application, the governmental entity shall pay for an
independent engineering review of the project to determine
the technical feasibility, engineering standards, and total
estimated cost of the project. An engineering review required
by the board under this subsection may be completed by the
United States army corps of engineers.
4. Upon review of the applications, the board, following
consultation with the economic development authority, shall
approve, defer, or deny the applications. If a project plan
is denied, the board shall state the reasons for the denial
and the governmental entity may resubmit the application so
long as the application is filed on or before January 1, 2016.
If a project plan application is approved, the board shall
specify whether the governmental entity is approved for the
use of sales tax revenues under section 418.12 or whether the
governmental entity is approved to receive financial assistance
from the flood mitigation fund under section 418.10. If
the board approves a project plan application that includes
financial assistance from the flood mitigation fund, the board
shall negotiate and execute on behalf of the division all
necessary agreements to provide such financial assistance. If
the board approves a project plan application that includes
the use of sales tax increment revenues, the board shall
establish the annual maximum amount of such revenues that
may be remitted to the governmental entity not to exceed the
limitations in section 418.12, subsection 4. The board may,
however, establish remittance limitations for the project lower
than the individual project remittance limitations specified
for projects under section 418.12, subsection 4.
5. The board shall not approve a project plan application
that includes financial assistance from the flood mitigation
fund or the use of sales tax revenue to pay principal and

Senate File 2217, p. 9
interest on or to refinance any debt or other obligation
existing prior to the approval of the project.
6. The board shall not approve a project plan application
for which the amount of sales tax increment revenue remitted to
the governmental entity would exceed fifteen million dollars in
any one fiscal year or if approval of the project would result
in total remittances in any one fiscal year for all approved
projects to exceed, in the aggregate, thirty million dollars.
7. Upon approval of an application for financial assistance
under the program, the board shall notify the treasurer of
state regarding the amount of moneys needed to satisfy the
award of financial assistance and the terms of the award. The
treasurer of state shall notify the division any time moneys
are disbursed to a recipient of financial assistance under the
program.
8. If, following approval of a project application under the
program, it is determined that the amount of federal financial
assistance exceeds the amount of federal financial assistance
specified in the application, the board shall reduce the award
of financial assistance from the flood mitigation fund or
reduce the amount of sales tax revenue to be received for the
project by a corresponding amount.
Sec. 11. NEW SECTION . 418.10 Flood mitigation fund.
1. A flood mitigation fund is created as a separate and
distinct fund in the state treasury under the control of the
board and consists of moneys appropriated by the general
assembly and any other moneys available to and obtained or
accepted by the board for placement in the fund. Moneys in the
fund shall only be used for the purposes of this section.
2. Payments of interest, repayments of moneys loaned
pursuant to this chapter, and recaptures of grants, if provided
for in the financial assistance agreements, shall be deposited
in the fund.
3. The moneys in the fund shall be used to provide
assistance in the form of grants, loans, and forgivable loans.
The board may only provide financial assistance from moneys in
the fund.
4. Moneys credited to the fund are not subject to
section 8.33 and shall not be transferred, used, obligated,
appropriated, or otherwise encumbered except as provided in
this chapter. Notwithstanding section 12C.7, subsection 2,
interest or earnings on moneys in the fund shall be credited
to the fund.

Senate File 2217, p. 10
5. If any portion of the moneys appropriated for deposit
in the fund have not been awarded during the fiscal year for
which the appropriation is made, the portion which has not
been awarded may be utilized by the board to provide financial
assistance under the program in subsequent fiscal years.
6. The board may make a multiyear commitment to a
governmental entity of up to four million dollars in any one
fiscal year.
7. Moneys received by a governmental entity from the fund
shall be deposited in the governmental entity’s flood project
fund under section 418.13.
8. The board is not required to award financial assistance
pursuant to this section unless moneys are appropriated to and
available from the fund.
9. Following completion of all projects approved to utilize
financial assistance from the fund and upon a determination
by the board that remaining moneys in the fund are no longer
needed for the program, all moneys remaining in the fund or
subsequently deposited in the fund shall be credited for
deposit in the general fund of the state.
Sec. 12. NEW SECTION . 418.11 Sales tax increment
calculation.
1. The department of revenue shall calculate quarterly the
amount of increased sales tax revenues for each governmental
entity approved to use sales tax increment revenues and the
amount of such revenues to be transferred to the sales tax
increment fund pursuant to section 423.2, subsection 11,
paragraph “b” .
2. The department of revenue shall calculate the amount of
the increase for purposes of subsection 1 as follows:
a. Determine the amount of sales subject to the tax under
section 423.2 in each applicable area specified in subsection
3, during the corresponding quarter in the base year from
retail establishments in such areas.
b. Determine the amount of sales subject to the tax under
section 423.2 in each applicable area specified in subsection
3, during the corresponding quarter in each subsequent calendar
year from retail establishments in such areas.
c. Subtract the base year quarterly amount determined under
paragraph “a” from the subsequent calendar year quarterly
amount in paragraph “b” .
d. If the amount determined under paragraph “c” is positive,
the product of the amount determined under paragraph “c” times

Senate File 2217, p. 11
the tax rate imposed under section 423.2 shall constitute the
amount of increased sales tax revenue pursuant to subsection 1.
3. a. For projects approved for a governmental entity as
defined in section 418.1, subsection 4, paragraph “a” , the area
used to determine the sales tax increment shall include only
the unincorporated areas of the county.
b. For projects approved for a governmental entity as
defined in section 418.1, subsection 4, paragraph “b” , the area
used to determine the sales tax increment shall include only
the incorporated areas of the city.
c. For projects approved for a governmental entity as
defined in section 418.1, subsection 4, paragraph “c” , the
area used to determine the sales tax increment shall include
the incorporated areas of each city that is participating
in the chapter 28E agreement, the unincorporated areas of
the participating county, and the area of any participating
drainage district not otherwise included in the areas of the
participating cities or county, as applicable.
4. Each governmental entity shall assist the department
of revenue in identifying retail establishments in the
governmental entity’s applicable area that are collecting sales
tax. This process shall be ongoing until the governmental
entity ceases to utilize sales tax revenue under this chapter.
Sec. 13. NEW SECTION . 418.12 Sales tax increment fund.
1. A sales tax increment fund is established as a separate
and distinct fund in the state treasury under the control of
the department of revenue consisting of the amount of the
increased state sales and services tax revenues collected by
the department of revenue within each applicable area specified
in section 418.11, subsection 3, and deposited in the fund
pursuant to section 423.2, subsection 11, paragraph “b” . Moneys
deposited in the fund are appropriated to the department of
revenue for the purposes of this section. Moneys in the fund
shall only be used for the purposes of this section.
2. An account is created within the fund for each
governmental entity that has adopted a resolution under section
418.4, subsection 3, paragraph “d” .
3. The department of revenue shall deposit in the fund the
moneys described in subsection 1 beginning the first day of the
quarter following receipt of a resolution under section 418.4,
subsection 3, paragraph “d” . However, in no case shall a sales
tax increment be calculated under section 418.11 or such moneys
be deposited in the fund under this section prior to January

Senate File 2217, p. 12
1, 2014.
4. a. Upon request of a governmental entity, the department
of revenue shall remit the moneys in the governmental entity’s
account within the fund to the governmental entity for deposit
in the governmental entity’s flood project fund. Such requests
shall be made not more than quarterly. Requests for remittance
shall be submitted on forms prescribed by the department
of revenue. In lieu of quarterly requests, a governmental
entity may submit a certified schedule of principal and
interest payments on bonds issued under section 418.14. If
such a certified schedule is submitted, the department of
revenue shall, subject to the remittance limitations of this
chapter, remit from the governmental entity’s account to the
governmental entity for deposit in the governmental entity’s
flood project fund the amounts necessary for such principal and
interest payments in accordance with the certified schedule.
Requests for remittance shall be made for the amount of moneys
in the governmental entity’s account necessary to pay the
governmental entity’s costs or obligations related to the
project, according to the sales tax revenue funding needs
specified in the approved project plan. A governmental entity
shall not, however, during any fiscal year receive remittances
under this section exceeding fifteen million dollars or seventy
percent of the total yearly amount of increased sales tax
increment revenue in the governmental entity’s applicable area
and deposited in the governmental entity’s account, whichever
is less. The total amount of remittances during any fiscal
year for all governmental entities approved to use sales tax
revenues under this chapter shall not exceed, in the aggregate,
thirty million dollars. Remittances from the department of
revenue shall be deposited in the governmental entity’s flood
project fund under section 418.13.
b. The department of revenue shall adopt rules for the
remittance of moneys to governmental entities.
5. If the department of revenue determines that the revenue
accruing to the fund or accounts within the fund exceeds
thirty million dollars or exceeds the amount necessary for
the purposes of this chapter if the amount necessary is less
than thirty million dollars, then those excess moneys shall
be credited by the department of revenue for deposit in the
general fund of the state.
6. a. Each governmental entity approved by the board to
use sales tax increment revenues for a project under this

Senate File 2217, p. 13
chapter shall submit two reports to the board certifying the
total amount of nonpublic investment, as defined in section
418.9, subsection 2, paragraph “d” , that has occurred in
the governmental entity’s area as defined in section 418.11,
subsection 3. The first report shall be submitted not later
than five years after the board approved the project. The
second report shall be submitted to the board not later than
ten years after the board approved the project.
b. If the nonpublic investment requirements of section
418.9, subsection 2, paragraph “d” , are not satisfied, the board
shall reduce the governmental entity’s amount of sales tax
increment revenues eligible to be remitted during the remaining
period of time for receiving remittances by an amount equal
to the shortfall in nonpublic investment. However, such a
reduction shall not be to an amount less than zero.
Sec. 14. NEW SECTION . 418.13 Flood project fund.
1. Sales tax revenue remitted by the department of revenue
to a governmental entity under section 418.12 or financial
assistance received by a governmental entity pursuant to
section 418.10 shall be deposited in the governmental entity’s
flood project fund created for purposes of this chapter and
shall be used to fund the costs of the governmental entity’s
approved project and to pay principal and interest on bonds
issued pursuant to section 418.14, if applicable.
2. In addition to the moneys received pursuant to section
418.10 or 418.12, a governmental entity may deposit in the
flood project fund any other moneys lawfully received by the
governmental entity, including but not limited to local sales
and services tax receipts collected under chapter 423B.
Sec. 15. NEW SECTION . 418.14 Bond issuance.
1. a. A governmental entity receiving sales tax revenues
pursuant to this chapter is authorized to issue bonds that are
payable from revenues deposited in the governmental entity’s
flood project fund created pursuant to section 418.13 for the
purpose of funding a project in the area from which sales tax
revenues will be collected.
b. A governmental entity shall have the authority to pledge
irrevocably to the payment of the bonds an amount of revenue
derived from the sales tax revenue received by the governmental
entity pursuant to section 418.12 for each of the years the
bonds remain outstanding, together with other amounts held in
the flood project fund of the governmental entity.
c. The costs of a project may include but are not limited

Senate File 2217, p. 14
to administrative expenses, construction and reconstruction
costs, engineering, fiscal, financial and legal expenses,
surveys, plans and specifications, interest during construction
or reconstruction and for one year after completion of the
project, initial reserve funds, acquisition of real or personal
property necessary for the construction or reconstruction
of the project, subject to the limitation in section 418.4,
subsection 1, paragraph “c” , and such other costs as are
necessary and incidental to the construction or reconstruction
of the project and the financing thereof. The governmental
entity shall have the power to retain and enter into agreements
with engineers, fiscal agents, financial advisers, attorneys,
architects, and other consultants or advisers for planning,
supervision, and financing of a project upon such terms and
conditions as shall be deemed by the governing body of the
governmental entity as advisable and in the best interest of
the governmental entity. Bonds issued under the provisions of
this chapter are declared to be investment securities under the
laws of the state of Iowa.
2. a. If a governmental entity elects to authorize the
issuance of bonds payable as provided in this section, the
governmental entity shall follow the authorization procedures
for cities set forth in section 384.83.
b. A governmental entity shall have the authority to issue
bonds for the purpose of refunding outstanding bonds issued
under this section without otherwise complying with the notice
and hearing provisions of section 384.83.
3. a. Except as otherwise provided in this section,
bonds issued pursuant to this section shall not be subject to
the provisions of any other law or charter relating to the
authorization, issuance, or sale of bonds. Bonds issued under
this section shall not limit or restrict the authority of a
governmental entity as defined in section 418.1, subsection 4,
paragraphs “a” and “b” , or a city, county, or drainage district
participating in a governmental entity as defined in section
418.1, subsection 4, paragraph “c” , to issue bonds for the
project under other provisions of the Code.
b. The bonds may be issued in one or more series and shall
comply with all of the following:
(1) The bonds shall bear the date of issuance.
(2) The bonds shall specify whether they are payable on
demand or the time of maturity.
(3) The bonds shall bear interest at a rate not exceeding

Senate File 2217, p. 15
that permitted by chapter 74A.
(4) The bonds shall be in a denomination or denominations,
be in the form, have the rank or priority, be executed in
the manner, be payable in the medium of payment, at the
place or places, be subject to the terms of redemption, with
or without premium, be secured in the manner, and have the
other characteristics, as may be provided by the resolution
authorizing their issuance. The resolution authorizing the
issuance of the bonds may also prescribe additional provisions,
terms, conditions, and covenants which the governmental
entity deems advisable, including provisions for creating and
maintaining reserve funds and the issuance of additional bonds
ranking on a parity with such bonds and additional bonds junior
and subordinate to such bonds.
c. The bonds may be sold at public or private sale at a
price as may be determined by the governmental entity.
d. The principal and interest on the bonds issued by a
governmental entity under this section shall be payable solely
and only from and secured by the revenue derived from the sales
tax revenues received by the governmental entity pursuant to
section 418.12 and from other funds of the governmental entity
lawfully available from the governmental entity’s flood project
fund established under section 418.13.
4. a. Bonds, notes, or other obligations issued by a
governmental entity for purposes of financing a project under
this chapter are not an obligation of this state. Except to
the extent a debt service levy is authorized for the payment
of a governmental entity’s costs related to bonds, notes,
or other obligations as provided in paragraph “b” , bonds,
notes, or other obligations issued by a governmental entity
for purposes of financing a project under this chapter are
not an obligation of any political subdivision of this state
other than the governmental entity, and such bonds, notes, or
other obligations shall not constitute an indebtedness of any
political subdivision of this state within the meaning of any
constitutional or statutory debt limitation or restriction.
A governmental entity shall not pledge the credit or taxing
power of this state. Except as provided in paragraph “b” ,
a governmental entity shall not pledge the credit or taxing
power of any political subdivision of this state other than the
governmental entity or make its bonds issued under this section
payable out of any moneys except those in the governmental
entity’s flood project fund.

Senate File 2217, p. 16
b. If the moneys in the governmental entity’s flood project
fund are insufficient to pay the governmental entity’s costs
related to bonds, notes, or other obligations issued under
this chapter, the amounts necessary to pay such costs may
be levied and transferred for deposit in the governmental
entity’s flood project fund from the debt service fund of the
governmental entity or, if applicable, the debt service fund
of a participating city or county for a governmental entity as
defined in section 418.1, subsection 4, paragraph “c” , but only
if and to the extent provided in the resolution authorizing
the issuance of bonds and, if applicable, the chapter 28E
agreement.
c. The sole remedy for a breach or default of a term of
a bond issued under this section is a proceeding in law or
in equity by suit, action, or mandamus to enforce and compel
performance of the duties required by this chapter and of the
terms of the resolution authorizing the issuance of the bonds.
Sec. 16. NEW SECTION . 418.15 Durational limitation on use
of revenues —— property disposition.
1. A governmental entity shall not receive remittances of
sales tax revenue under this chapter after twenty years from
the date the governmental entity’s project was approved by the
board.
2. If the governmental entity ceases to need the sales
tax revenues prior to the expiration of the limitation under
subsection 1, the governmental entity shall notify the director
of revenue.
3. Upon the receipt of a notification pursuant to subsection
2, or the expiration of the limitation under subsection 1, the
department of revenue shall cease to deposit revenues into the
governmental entity’s account in the sales tax increment fund.
4. All property and improvements acquired by a governmental
entity as defined in section 418.1, subsection 4, paragraph “c” ,
relating to a project shall be transferred to the county, city,
or drainage district designated in the chapter 28E agreement to
receive such property and improvements. The county, city, or
drainage district to which such property or improvements are
transferred shall, unless otherwise provided in the chapter 28E
agreement, be solely responsible for the ongoing maintenance
and support of such property and improvements.
Sec. 17. Section 423.2, subsection 11, Code Supplement
2011, is amended to read as follows:
11. a. All revenues arising under the operation of the

Senate File 2217, p. 17
provisions of this section shall be deposited into the general
fund of the state.
b. Subsequent to the deposit into the general fund of the
state and after the transfer of such pursuant to paragraph “a” ,
the department shall do the following in the order prescribed:
(1) Transfer the revenues collected under chapter 423B , the
department shall transfer .
(2) Transfer one-sixth of such the remaining revenues to the
secure an advanced vision for education fund created in section
423F.2 . This paragraph subparagraph (2) is repealed December
31, 2029.
(3) Subject to the limitation on the calculation and
deposit of sales tax increment revenues in section 418.12,
beginning the first day of the quarter following adoption
of the resolution pursuant to section 418.4, subsection 3,
paragraph “d” , transfer to the account created in the sales tax
increment fund for each governmental entity approved to use
sales tax increment revenues under chapter 418, that portion
of the increase in sales tax revenue, determined in section
418.11, subsection 2, paragraph “d” , in the applicable area
of the governmental entity, that remains after the transfer
required under subparagraph (2) of this paragraph “b” .
Sec. 18. EFFECTIVE UPON ENACTMENT. This Act, being deemed
of immediate importance, takes effect upon enactment.
______________________________
JOHN P. KIBBIE
President of the Senate
______________________________
KRAIG PAULSEN
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 2217, Eighty-fourth General Assembly.
______________________________
MICHAEL E. MARSHALL
Secretary of the Senate
Approved _______________, 2012
______________________________
TERRY E. BRANSTAD
Governor