Bill Text: IA SSB1184 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to the procedure for disposal of city utilities by sale.
Spectrum: Committee Bill
Status: (N/A - Dead) 2019-04-02 - Subcommittee recommends amendment and passage. [SSB1184 Detail]
Download: Iowa-2019-SSB1184-Introduced.html
Senate
Study
Bill
1184
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
FEENSTRA)
A
BILL
FOR
An
Act
relating
to
the
procedure
for
disposal
of
city
utilities
1
by
sale.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
2574XC
(2)
88
gh/rn
S.F.
_____
Section
1.
Section
388.2A,
subsection
2,
paragraph
a,
Code
1
2019,
is
amended
by
adding
the
following
new
subparagraph:
2
NEW
SUBPARAGRAPH
.
(3)
The
governing
body
of
a
city
in
which
3
the
city
utility
is
located
which
has
a
population
of
less
4
than
six
thousand
shall
not
be
required
to
obtain
appraisals
5
pursuant
to
this
paragraph.
6
Sec.
2.
Section
388.2A,
subsection
2,
paragraph
b,
Code
7
2019,
is
amended
to
read
as
follows:
8
b.
After
considering
the
appraisals
obtained
pursuant
to
9
paragraph
“a”
,
or
upon
receiving
the
proposal
to
dispose
of
the
10
city
utility
by
sale
if
the
appraisals
were
not
required
as
11
provided
in
paragraph
“a”
,
subparagraph
(3),
the
governing
body
12
shall
establish
the
city
utility’s
fair
market
value.
The
fair
13
market
value
shall
be
the
greater
of
any
of
the
following:
14
(1)
The
average
of
the
two
appraisals
obtained
pursuant
to
15
paragraph
“a”
,
if
such
appraisals
were
required
.
16
(2)
The
depreciated
value
of
the
capital
assets
to
be
sold.
17
(3)
The
amount
necessary
to
retire
all
of
the
city’s
18
outstanding
revenue
and
general
obligations
issued
for
purposes
19
of
the
city
utility.
20
EXPLANATION
21
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
22
the
explanation’s
substance
by
the
members
of
the
general
assembly.
23
Current
law
establishes
a
procedure
for
the
governing
body
24
of
a
city
to
dispose
of
a
city
utility
by
sale.
The
procedure
25
requires
the
governing
body
to
obtain
two
separate
appraisals
26
of
the
city
utility
system
to
determine
its
fair
market
value.
27
This
bill
provides
that
a
governing
body
of
a
city
in
which
28
the
city
utility
is
located
with
a
population
of
less
than
29
6,000
shall
not
be
required
to
obtain
the
appraisals
to
dispose
30
of
the
city
utility
by
sale.
As
provided
in
current
law,
31
the
fair
market
value
of
a
city
utility
located
in
a
city
32
with
a
population
of
less
than
6,000
shall
be
the
greater
of
33
the
depreciated
value
of
the
capital
assets
to
be
sold,
or
34
the
amount
necessary
to
retire
all
of
the
city’s
outstanding
35
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