SF 633 – Assessment of subdivided real property
SF 634 – Limits on property tax revenues; city/county budget growth cap
SF 636 – Material participation standards for capital gains
SF 637- Gross weight of special trucks
HF 741- Extends bond from 20 to 30 years for flood purposes
HF 753 – Assessment of fees when public defender requests documents
SF 605 – Child Support Recovery fees
SF 612 – Iowa Utilities Board (IUB) omnibus
SF 618 – ABD Omnibus Department Bill
SF 619 – Regulation of service contract providers
SF 620 – Disposal of city utilities by sale
SF 621 – Adult adoptees obtaining copies of original birth certificates
SF 629 – Excessive weights for raw forest products
SF 634 – Limits on property tax revenues; city/county budget growth cap
HF 389 – Boat, ATV and snowmobile registration process improvements
HF 537– Public utility right-of-way fee
HF 750 – IDALS/DNR departmental bill
COMMITTEE ACTION:
SF 633 – Assessment of subdivided real property
SF 633 would amend current Code language regarding the assessment of certain subdivided real property. Current law under 405.1 allows counties and cities to adopt ordinances so that land that has been subdivided for housing development is assessed as it was prior to subdivision until the property is sold for construction or the occupancy of housing or for a period of five years, whichever is shorter. The law also allows counties or cities to extend the ordinance regarding the assessment of those properties. A separate Code section (441.72) prohibits the increased assessment of subdivision property when the plat is recorded for a five-year period or until the property is improved and is not restricted to housing developments.
Under the bill, subdivided properties would simply maintain the prior assessment until the property is sold for construction or the occupancy of housing. It eliminates the need for an ordinance and removes the time limits on the assessments. The two Code sections create two processes for the assessment of these properties, and the bill tries to conform those two processes.
The committee adopted an amendment to further clarify the process for the assessment of properties platted for subdivisions. The amendment will repeal the process that exists under 405.1 since this process only applies to housing subdivisions, while 441.72 applies to all subdivided property. The amendment also amends the process under 441.72 to remove outdated language for subdivision plats recorded between 2004 and 2011.
[4/18: Short Form]
SF 634 – Limits on property tax revenues; city/county budget growth cap
SF 634 would establish growth limitations for city and county property tax revenues and budgets funded by those property tax revenues. SF 634 is similar to legislation that has been moving through the House, with some differences:
- The Senate proposal only allows an additional 1% budget growth over the 2% growth limitation. This is essentially a “hard cap” of 3%. The House proposal has a “soft cap” of 2% with no limit on the additional amount that would be subject to the reverse referendum provisions.
- The additional 1% can be used if the local government adopts a resolution by a supermajority vote and is subject to the reverse referendum provisions included in the bill.
- The reverse referendum thresholds are lower in the Senate proposal compared to the House. The Senate requires 10% of voters in the most recent presidential election or 1,000 voters, whichever is less. The House has 20%/2,000 levels for the referendum petition.
- The Senate proposal does include a provision that allows cities/counties to fully fund their required retirement pension contributions. This is limited to the amount of the contributions that exceed the growth cap in the bill. This only applies to pension contributions, not other employee benefits, including other benefits offered under the 411/412 systems.
- The Senate bill also includes an expansion of the current elderly and disabled property tax credit that will apply to senior homeowners with incomes less than 250% of the federal poverty level. The proposal allows the homeowner to receive either the existing elderly property tax credit or the difference between the taxes due in the current year versus the year the taxpayer first filed a claim. The taxpayer is eligible for whichever credit is greater. The current credit is likely to be the more lucrative credit in the initial years, but the new credit will grow in value as the taxes owed on the property continue to grow over the years.
- The Senate proposal also includes language clarifying that local assessors must use the most current version of the state appraisal manual developed by the Department of Revenue. The current law requires the use of this manual but does not specify which one must be used.
- The Senate proposal creates a new property tax advisory group to oversee implementation of the new changes, advise on a broad range of other property tax issues and make recommendations to the Legislature.
SF 634 restricts city and county property tax revenues to an “annual growth factor” at 102% of the previous year’s property tax revenues. Under SF 634, local government can include up to 1% growth above the 102% maximum by supermajority vote of the governing board. That action is subject to a “reverse referendum” petition process that can require a public vote to approve or deny the additional property tax revenues and spending authority.
Each year, a city or county (governing body) is to start with their current maximum property tax dollars certified for the current fiscal year. Items such as debt service, mental health, capital projects, pension and retirement benefits will not be included within the maximum property tax dollar cap and are not subject to the growth limitations. However, other expenditures for services and needs that have been allowed beyond the basic levy will be included. These items include, but are not limited to, employee benefits, retirement contributions and insurance.
The process begins by determining a “0% budget” using a new “status quo base effective rate” tax levy rate. This rate is based on the previous year’s valuations plus new revaluations. This rate is meant to provide the public with a rate comparison to show what the levy rate would be maintaining property tax revenues at a flat level.
New revaluations do not include new construction, additions or improvements to existing structures that are not normal and necessary repairs, net boundary adjustments, no longer dividing tax revenues in an urban renewal area or urban revitalization area, and new exemptions for existing properties and the expiration or removal of property exemptions. These items can be included in the next year’s budget outside of the growth limitations in the bill.
Property taxes certified for mental health and disabilities services, a unified law enforcement district, an emergency services fund, the debt service fund and any capital projects fund are not counted against the maximum amount of property tax dollar that may be certified for a budget year.
The committee adopted an amendment with a number of clarifying fixes to the bill. These include:
- Cleaning up provisions regarding local emergency management funds to put cities and counties on the same level. The bill did not include changes for cities.
- Striking portions of the bill that had defined remodeling as changes to existing structures that require a building permit. Not all jurisdictions require building permits; these situations will be covered by language regarding additions or improvements to existing structures.
- Clarifying that the portion of the bill regarding retirement pension contributions be outside of the growth cap only applies to retirement and pension expenses, not all benefits under these systems. Police and fire retirement systems also include workers’ compensation and other benefits beyond retirement contributions.
[4/18: 10-7, Party Line (No: Edler)]
SF 635 – Income tax checkoffs
SF 635 would re-authorize the state fair and combined volunteer firefighter/veterans income tax checkoffs. The bill also establishes a notification process so the Legislature will know which income tax checkoffs are scheduled to be eliminated from the state income tax form.
Under current law, there is a two-year cycle for established income tax checkoffs. After those two years, the two checkoffs that have received the lowest amount of funds are eliminated from the state income tax return. For this cycle, the two lowest returns were the state fair and the combined volunteer firefighter/veterans checkoffs. The highest two checkoffs support wildlife habitat and the child abuse prevention.
The state income tax return has a maximum of four slots available for income tax checkoffs. The current system allows an opportunity to consider which checkoffs are included on the state income tax return and provides an opportunity to add new checkoffs to the form.
[4/18: Short Form]
SF 636 – Material participation standards for capital gains
SF 636 would change the “materially participating” standard for determining if a taxpayer is eligible to claim an exclusion for capital gains on the sale of qualified property. Material participation refers to the level of involvement a taxpayer has in the operations of a business or farm; whether or not any particular taxpayer materially participates in a business or farm is determined under the Internal Revenue Code.
According to the analysis of the bill by the Department of Revenue, the projected fiscal impact from this change to the material participation standard is less than $70,000 per year. Their analysis views paragraph (3)(a) in either Division I or Division II of this bill as codifying current IAC 40.38(2)c and IAC 40.38(3)f, thus having no fiscal impact. For the changes outlined in paragraph (3)(b) of the bill, the department analyzed returns from Tax Year 2017 to identify beneficiaries of trusts and estates that did not claim a capital gains exclusion but would meet the new material participation standard. That analysis identified 70 individuals who reported $630,000 in capital gains.
Under the bill, material participation is granted to all members of an estate or trust if the estate or trust is deemed to be materially participating in a business or rental arrangement for any year if an executor or trustee of the estate or trust is materially participating in the estate’s or trust’s business or, if the real property is leased to another person, the executor or trustee is materially participating in the lessee’s business that uses the real property. The material participation is determined by the activity of the trust rather than the individual taxpayer.
Current law has a different standard for determining material participation. These standards are outlined in administrative rule and are summarized by the Department of Revenue in their fiscal analysis of the proposal:
For Partnerships, S corporations, LLCs, Estates, or Trusts: According to IAC 40.38(2)c, for situations in which real property was sold by a partnership, subchapter S corporation, limited liability company (LLC), estate or trust, and the capital gain from the sale of the real property flows through to the owners of the business entity for federal income tax purposes, the owners may exclude the capital gain from their net incomes if the real property was held for 10 or more years and the owners had materially participated in the business for 10 years prior to the date of sale of the real property, irrespective of whether the type of business entity changed during the 10-year period prior to the date of sale. That is, if the owner of the business had held and materially participated in the business during the entire 10-year period before the sale, the fact that the business changed from one type of entity to another during the period does not disqualify the owner from excluding capital gains from the sale of real estate owned by the business during that whole 10-year period.
IAC 40.38(3)f has a similar statement for net capital gains from the sale of assets of a business sold by a partnership, S corp, LLC, estate or trust.
Estates or Trusts: According to IAC 701-89.8(8), U.S.C. Section 1202(b) provides that an estate or trust is allowed a deduction for net capital gain received during the taxable year. Except for the requirement of allocation between the beneficiaries and the estate or trust, the deduction is computed in the same manner as the net capital gain deduction allowed individuals. See federal regulation Section 1.1202-1 (b). If the net capital gain is allocated to the corpus, the estate or trust is entitled to the deduction. If the will or trust instrument requires the capital gain to be distributed to the beneficiaries or if the trustee or personal representative of a decedent’s estate is authorized to allocate the capital gain to income and distributes the capital gain, then the capital gain deduction is allocated to the beneficiaries and is not a deduction to the estate or trust.
If the trust is responsible for the tax on the gain, material participation is measured at the trust level and the “activities of fiduciaries, employees, and agents are considered.” Id., citing 701 IAC 89.8(8)(l) and Carter Trust, 256 F.Supp.2d at 543.
However, if the beneficiary is responsible for tax on the gain, the material participation is measured at the beneficiary level. 701 IAC 89.8(8)(l). Each beneficiary must independently show material participation in the business. Beneficiaries who cannot show they materially participated in the business may not claim the capital gain deduction.
[4/18: 11-6, Party Line]
SF 637– Gross weight of special trucks
SF 637 allows a special truck used for certain farming purposes to increase to a gross maximum weight of 39 tons from the current maximum of 32 tons. The registration fee is an additional $25 per ton between 32 and 38 tons, and an additional $10 between 38 and 39 tons.
[4/23: Short Form]
HF 741– Extends bond from 20 to 30 years for flood purposes
HF 741 would allow general obligation bonds issued to finance a flood-control project that was approved by the state flood mitigation board to be financed over a 30-year period instead of 20 years under current law. This is the same time frame that currently exists for cities and counties to issue bonds for essential purposes. The flood-control project that meets the terms outlined in the bill is in Cedar Rapids. There were 11 flood mitigation projects approved by the board and more could be coming if the Governor’s recommended funding is approved.
[4/24: Short Form]
HF 753 – Assessment of fees when public defender requests documents
HF 753 requires that an agency furnish copies of any document in the possession of the agency that the agency has the technological capacity to duplicate at a cost not to exceed $10 per document, upon request of the State Public Defender, a public defender office, or an attorney or nonprofit legal organization appointed by the court as a designee of the State Public Defender.
[4/24: Short Form]
HF 767 – Electric vehicles
HF 767 creates new registration fees for Electric and Hybrid Vehicles and a new excise tax on hydrogen and electric fuel. In light of the increasing use of these vehicles, the Legislature directed the Iowa Department of Transportation (DOT) to estimate the impact of increased usage of electric, hybrid and other high-efficiency motor vehicles on future revenues to the Road Use Tax Fund. It also required DOT to evaluate and recommend alternative funding mechanisms or the alteration of existing funding mechanisms to offset decreases in future revenues due to the increased use of electric, hybrid and other high-efficiency motor vehicles. DOT produced recommendations with the goal of no net change in revenue, equity and low administrative costs. HF 767 is based on the recommendations from the DOT report.
Registration Fees – Battery electric vehicles are vehicles that have no internal combustion engine and are propelled exclusively by electricity. Under the bill, battery electric motors will now pay an additional registration fee of $65 in 2020, increasing to $130 after January 12022. Plug-in hybrid vehicles will now pay a $32 fee beginning in 2020, increasing to a fee of $65 after January 12022. Motorcycles that have a battery electric or hybrid motor will now pay an additional $4.50 fee beginning in 2020, with the fee increasing to $9 by January 1, 2022.
Excise Tax – A gallon of hydrogen is 249 pounds and will pay an excise tax of 65 cents per gallon. Vehicles using hydrogen fuel will have a special fuel sticker from the County Treasurer designating that the vehicle takes special fuel. Electric fuel means electrical energy delivered or placed into a battery or other energy source outside the motor vehicle to propel it. An excise tax of two and six-tenths cents per kilowatt hour of electric fuel delivered into the battery will attach at the time of delivery. A person cannot sell or dispense electric fuel unless they hold an electric fuel license.
[4/24: 11-6 (Yes: Republicans, Quirmbach; No: Democrats, Nunn)]
FLOOR ACTION:
SF 605 – Child Support Recovery fees
SF 605 is a Department of Human Services bill regarding Child Support Recovery fees. There are two fees associated with Child Support Recovery. The bill eliminates the application fee of $25. It changes the annual fee to what is required by federal law. The fee will be collected from the obligee after $550 in support has been distributed to the family. The fee is only charged if the obligee has never received cash assistance. The bill amends Iowa Code Chapter 252B to remove the specific amount of the fee and cites directly to federal law. This means that the state will not have to pass legislation each time the federal government makes changes.
[4/22: 49-0 (Absent: Segebart)]
SF 612 – Iowa Utilities Board (IUB) omnibus
SF 612 is a recommendation by the Iowa Utilities Board. The proposal:
- Adds definition of “Competitive Local Exchange Service Provider” and “Local Exchange Carrier” that were repealed in Code section 479.96 in 2018. Other Code chapters relied upon the specific definitions. This adds the same definitions to Code 34A — 911 Emergency Telephone Systems and 423– Streamlined Sales and Use Tax Act to ensure that these agencies can continue their operations as intended.
- Authorizes the IUB to appoint or designate an administrative law judge (ALJ) within IUB to conduct proceedings that are currently handled by the full Board. This will assist with IUB’s goals of delivering excellent customer service, ensuring compliance with legal requirements and maximizing employee effectiveness by using an employee with particular subject matter expertise.
- Codifies current practice of issuing an advanced, estimated assessment to a limited number of utilities and billing all utilities for direct costs. Utilities that receive an advanced estimated assessment will be reconciled at the end of the fiscal year. This practice has significantly reduced the need for staff to send out statements issuing refunds and invoices for further assessments.
- Allows the IUB to identify when payments will be remitted to the Dual Party Relay (DPR) Fund, which pays for relay services and equipment for those that require telecommunications assistance. This will help the telecommunications industry and IUB to more efficiently use time and resources. Currently, applicable telecommunications carriers must remit quarterly payments into the DPR.
- Aligns Iowa’s civil penalties with the federal levels. This will eliminate the need for IUB to file legislation on a continual basis to match Pipeline and Hazardous Materials Safety Administration (PHMSA) dollar amounts for fines. This affects intrastate pipelines only; interstate pipelines are already subject to federal penalties.
- Allows the IUB to use its existing authority to directly assess and bill the interstate pipeline company for the direct costs incurred for any inspection. This process was approved for intrastate pipelines in 2018, but interstate companies were inadvertently omitted. Currently, the companies must pay the IUB an annual inspection fee of 50 cents per mile of pipeline for each inch of diameter of the pipeline, which does not cover the IUB’s current annual costs of conducting inspections.
[4/23: 49-0 (Absent: Petersen)]
SF 618 – ABD Omnibus Department Bill
SF 618 is the Alcoholic Beverages Division (ABD) departmental bill. It makes changes that will create clarity, improve readability and make the law easier for regulators to apply and enforce with consistency. This is largely a technical cleanup bill.
This bill removes references to percentage of alcohol by weight from the definitions for alcoholic liquor, beer, high-alcoholic content beer and wine. The definition for wine is further amended to provide percentage age of alcohol by volume.
It allows ABD to prescribe a uniform fee against certain licensees when they fail to maintain dram shop liability insurance and to assess a capped fee to recover administrative costs related to contested case proceedings through the administrative rules process.
The bill will allow confidentiality of records collected by the Division from licensees or permittees in conjunction with investigations, inspections and audits before administrative or criminal charges are filed. This proposed change will assist the regulator and protect the rights of businesses it regulates.
The bill will require liquor, wine and beer manufacturers to share with the Division the records they are required to submit to the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury (TTB). This ensures that the Division has the information it needs to validate taxes owed to the state. Reciprocal language for class “A” native distilled spirits license holders was passed in 2017.
Other key changes in the bill include:
- Authorizing the Division to adopt rules to recover operational costs arising from the failure of licensees or permittees to remain in compliance with the law.
- Establishing uniform language regarding the types of action that may be taken because of a violation of the rules of the Division. Conforming changes are made throughout the chapter.
- Eliminating the additional tax imposed on airlines for Sunday sales of liquor.
- Relocating provisions in §123.144(2) and §123.146 that relate to how homemade beer can be used and how beer may be imported for personal use. These changes are intended to assist the reader by consolidating several related provisions into one section.
- Allowing Hy-Vee and other stores to have a distribution center carry alcohol and deliver it to homes.
[4/23: 48-2 (No: Celsi, Hogg)]
SF 619 – Regulation of service contract providers
SF 619 combines two Code Chapters (516E Motor Vehicle Service Contracts and 523C Residential Service Contracts). The proposal is based on recommendations by the Service Contract Industry Council (SCIC), a national trade association that works with lawmakers across the country to develop fair and uniform regulation. SCIC member companies collectively offer approximately 80% of all appliance, consumer electronics, home and vehicle service contracts in the U.S.
The Iowa Insurance Division has worked on the proposal to incorporate recommendations based on the Model Act by the National Association of Insurance Commissioners. The Attorney General’s Consumer Protection Division has offered additional recommendations, such as cancellation notice provisions and a stipulation that if unlicensed service companies sell in Iowa, it is a violation of the Iowa Consumer Fraud Act and the customer’s contract is void.
The service contract providers, the Insurance Division and the Consumer Protection Division have worked on an amendment to ensure that the existing consumer protections in the two current chapters are contained in the new merged chapter.
[4/22: 49-0 (Absent: Segebart)]
SF 620 – Disposal of city utilities by sale
SF 620 would remove the appraisal requirement prior to the sale of a public utility in limited situations. Current law requires the appraisal of a public utility before it is disposed of through a sale. This requirement was put in place to make sure that the public receives fair market value for the utility when it is sold to a private entity. The bill would facilitate the sale of a telecommunications utility in Hawarden. The city has had difficulty finding a qualified appraiser for their type of utility, and the cost of performing the appraisal would be prohibitive.
[4/23: 50-0]
SF 621 – Adult adoptees obtaining copies of original birth certificates
SF 621 provides a process for those who were adopted to obtain a non-certified copy of their original birth certificate after they turn 18. In addition, if the adopted person is deceased, their spouse or any relative within the second degree of consanguinity may request a non-certified copy of the birth certificate. Current Iowa law prohibits those who were adopted from obtaining a copy of their original birth certificate. The State Registrar of Vital Statistics of the Department of Public Health will develop a contact preference form on which a birth parent may state a preference regarding contact by the person who was adopted or their relative. In addition, the Registrar is to develop a medical history form on which a birth parent may provide family medical history. If a birth parent fills out these forms, the Registrar will attach them to the original birth certificate and the adoption decree, and the forms will be provided to the adult adoptee or relative who applies for and receives a copy of the original birth certificate and adoption decree. As amended on the Senate floor, a birth parent may fill out a contact form and a medical form indicating that they do not wish to be contacted and require that any personally identifiable information on the copy of the original birth certificate, the contact form or medical form be redacted.
[4/23: 50-0]
SF 629 – Excessive weights for raw forest products
SF 629 requires the Department of Transportation (DOT) to develop and implement a single statewide system to receive applications for and issue permits that allow for the operation of vehicles of excessive size or weight on highways or streets under the jurisdiction of the state or local authorities. The bill authorizes the DOT to determine, in consultation with the applicable local authorities, the network of highways and streets under the jurisdiction of local authorities, including the appropriate routes, on which vehicles issued permits under the system are authorized to operate. Permits issued under the system must be issued by the DOT for a fee established by DOT rule. Fees must be proportionate to the fees set forth in Code section 321E.14. The bill requires the DOT to allocate a portion of the fees collected to local authorities having jurisdiction over highways or streets on which vehicles issued permits under the system are authorized to operate. DOT must submit a report to the Legislature by December 31, 2021, regarding the development and implementation of the system.
SF 629 will allow the DOT to issue annual permits authorizing a vehicle or combination of vehicles to transport divisible loads of raw forest products from fields to storage, processing or other commercial facilities. The annual permit fee is $175. A vehicle or combination of vehicles for which a permit is issued under the bill may exceed the maximum weights set forth under Code section 321.463 if the gross weight on any one axle does not exceed the limitations specified in Code section 321E.7. Code section 321E.7 limits the gross weight on any one axle to 20,000 pounds and the gross weight on any one tandem axle having at least four tires to 46,000 pounds. The bill prohibits a vehicle or combination of vehicles issued such a permit from exceeding the size limitations set forth in Code sections 321.454 through 321.457. The bill also prohibits a vehicle or combination of vehicles for which a permit is issued from traveling on the interstate. The bill provides that such a permit issued by the DOT is valid for operation on non-primary highways if the local authority having jurisdiction over the non-primary highway has approved the route within the local authority’s jurisdiction used by the vehicle or combination of vehicles traveling under the permit.
[4/23: 37-12 (No: Celsi, Greene, Hogg, Miller-Meeks, Nunn, Quirmbach, Schultz, Segebart, Sinclair, J. Smith, R. Taylor, Zaun)]
SF 634 – Limits on property tax revenues; city/county budget growth cap
SF 634 would establish a new public hearing process before the local government begins assembling their budget. As part of this process, the local board will establish a total maximum property tax revenue limit for the city or county budget process. This total maximum property tax revenue consists of taxes available through existing levies for general services, rural services, trust and agency, and supplemental levies.
The proposal does not eliminate any levy authority or any specific levies. The local board must publish the maximum property tax revenues within that group for the current budget year. The board must then calculate an effective levy rate that shows what the effective rate would have been if total maximum property tax revenues were not increased. This would provide the public with information on how much property tax revenues are generated by new valuations and revaluations of existing property.
The proposal establishes a “soft cap” of 2% growth in total maximum property tax revenues over the previous year. If a local board proposes to increase the total maximum property tax revenue greater than 2%, the resolution must be approved by a two-thirds majority vote.
For counties, the levies included under the total maximum property tax calculation include:
- The sum of property tax dollars certified for general county services: ($3.50) basic levy, general county services supplemental levies and additions to basic levies (unusual circumstances), but excluding additions approved at election under current Code (special levy elections).
- The sum of property tax dollars certified for levy for rural county services: ($3.95) basic levy, rural county services supplemental levies and additions to basic levies (unusual circumstances), but excluding additions approved at election under current Code.
For cities, the levies included under the total maximum property tax revenue calculation include:
- The sum of property tax dollars certified for city government purposes under the following levies: the city basic levy ($8.10), city trust and agency fund, emergency fund and various additional taxes, under additional taxes, including emergency management commission and insurance.
The bill establishes new requirements for publication of information prior to the budget process. With the new process being added prior to the budget process, the bill allows an additional two weeks to complete local budgets that must be submitted to the state. The bill requires that local governments include information on the current budget protest process as part of their budget approval.
The bill does not include a reverse referendum process or “hard caps” on local budget growth. The bill maintains existing levies. The changes are effective for local budgets after July 1, 2020.
[4/23: 33-17 (Yes: Republicans, Bisignano)]
HF 389 – Boat, ATV and snowmobile registration process improvements
HF 389 updates the Iowa Code regarding the process for registering and titling of boats and other vessels. Boat and vessel registration is now done using an electronic licensing system. These changes will improve the process. Changes include:
- Allowing an owner to register their vessel with any county recorder rather than the county where the vessel was initially registered.
- Allowing a 60-day grace period for renewal of a boat registration. Boat registrations expire on April 30, prior to the time most owners take their vessel onto the water. Owners could renew prior to June 1 without having to pay a $5 late fee.
- Allowing an owner to initially register their vessel for shorter than the three-year registration period. This allows the owner to prorate the fee and align the registration with the timeline for renewal.
- Allowing a title to be used to sell or transfer a vessel. Currently, the transfer or sale requires completing a form on the original registration certificate.
- Removing the requirement for a notarial to witness the application for a title after acquiring a vessel.
The bill also increases from 15 to 30 the number of days a snowmobile, all-terrain vehicle or vessel dealer has to send fees and applications to transfer a vehicle requiring a title.
[4/18: 48-1 (No: Celsi; Absent: Mathis)]
HF 537– Public utility right-of-way fee
HF 537 relates to certain fees imposed on public utilities for the use of public rights-of-way [Ch. 480A]. Currently, local governments may impose fees on public utilities for operating facilities in public rights-of-way. A local government may only impose a fee for management costs that are caused by the utility’s activity in the right-of-way, and cannot require in-kind services in lieu of a fee. The bill modifies the definition of “management costs” and requires that such costs be direct and fully documented. It specifies that a local government may only recover a permit fee for management costs attributable to the utilities requested use of an available public right-of-way, instead of management costs caused by the utility’s activity in the right-of-way. It provides that Code section 480A.3, relating to permissible fees imposed on public utilities, not prohibit voluntary agreements between a public utility and local government to share services to reduce costs and preserve public rights-of-way for future public safety purposes, and allows in-kind services in lieu of a fee for such voluntary agreements. The Legislative Services Agency (LSA) fiscal note indicated that the legislation may decrease revenue to local governments by more than $100,000, but LSA has not received data to identify the total fees currently collected under Iowa Code chapter 480A, and so cannot estimate the fiscal impact at this time.
[4/23: 32-18 (Yes: Republicans, Kinney, Ragan; No: Democrats, Rozenboom, Zaun)]
HF 750 – IDALS/DNR departmental bill
HF 750 makes changes within the Iowa Department of Agriculture and Land Stewardship (IDALS) and the Iowa Department of Natural Resources (DNR). Changes include:
- The name of the Weather Bureau is changed to the Climatology Bureau to reflect current practice.
- IDALS no longer must issue a report on agricultural liming material.
- Changes Bulk Dry Animal Nutrient License from a one-year license to a two-year license that expires on July 1. The fee level remains the same.
- IDALS rather than DNR may award demonstration grants to those who purchase motor vehicles that use alternative fuels. DNR has not issued a grant in the past 10 years.
- Eliminating a provision authorizing IDALS and DNR to create one or more watershed demonstration projects.
- Authorizing IDALS to use money from the Agriculture Management Account of the Groundwater Protection Fund to support programs, projects and activities to improve surface or ground water.
[4/23: 49-0 (Absent: Petersen]
HF 772 – Empower Rural Iowa
HF 772 changes the Broadband Infrastructure Grant Program and the Workforce Housing Tax Credit Program. Under the bill, qualifying broadband projects eligible for grant assistance would need to meet upload/download speeds established by the Office of the Chief Information Officer. Currently, the speeds are outlined in Code at 25mbps/3mbps. The bill also extends the grant program by five years, and proposes a $5 million increase in tax credits available through the Workforce Housing Tax Credit Program. This $5 million would be set aside for projects located within the 88 lowest population counties in the 2010 census. The Workforce Housing Tax Credit Program currently has a tax credit cap of $20 million with $5 million reserved for projects in smaller communities.
The bill will change the application process from the current first-come, first-served system to a competitive process that will be scored by IEDA. Additionally, the bill allocates the entire cap for the program for FY20 to small city projects that were registered priority to July 1, 2019.
HF 772 also provides $10 million in Workforce Housing tax credits that will be available to projects that are located in counties designated disaster areas because of flooding along the Missouri River. Housing projects in disaster areas are eligible to receive a tax credit of up to 20% of the new investment in the project, in addition to the sales tax refunds. These funds are in addition to the credits available under the Workforce Housing Program.
[4/24: 50-0]