Bill Text: IA HSB649 | 2017-2018 | 87th General Assembly | Introduced


Bill Title: A bill for an act relating to the classification of drainage or levee districts and library districts as municipalities for the purpose of joining a local government risk pool and including effective date provisions.

Spectrum: Committee Bill

Status: (N/A - Dead) 2018-02-12 - Subcommittee recommends amendment and passage. [HSB649 Detail]

Download: Iowa-2017-HSB649-Introduced.html
House Study Bill 649 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON COWNIE) A BILL FOR An Act relating to the classification of drainage or levee 1 districts and library districts as municipalities for 2 the purpose of joining a local government risk pool and 3 including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5543HC (2) 87 ko/rj
H.F. _____ Section 1. Section 670.7, subsection 1, Code 2018, is 1 amended to read as follows: 2 1. The governing body of a municipality may purchase a 3 policy of liability insurance insuring against all or any part 4 of liability which might be incurred by the municipality or 5 its officers, employees, and agents under section 670.2 and 6 section 670.8 and may similarly purchase insurance covering 7 torts specified in section 670.4 . The governing body of a 8 municipality may adopt a self-insurance program, including 9 but not limited to the investigation and defense of claims, 10 the establishment of a reserve fund for claims, the payment 11 of claims, and the administration and management of the 12 self-insurance program, to cover all or any part of the 13 liability. The governing body of a municipality may join 14 and pay funds into a local government risk pool to protect 15 itself the municipality against any or all liability , loss of 16 property, or any other risk associated with the operation of 17 the municipality . The governing body of a municipality may 18 enter into insurance agreements obligating the municipality 19 to make payments beyond its current budget year to provide or 20 procure the policies of insurance, self-insurance program, 21 or local government risk pool. The premium costs of the 22 insurance, the costs of a self-insurance program, the costs of 23 a local government risk pool, and the amounts payable under 24 the insurance agreements may be paid out of the general fund 25 or any available funds or may be levied in excess of any tax 26 limitation imposed by statute. However, for school districts, 27 the costs shall be included in the district management levy 28 as provided in section 296.7 if the district has certified a 29 district management levy. If the district has not certified 30 a district management levy, the cost shall be paid from 31 the general fund. Any independent or autonomous board or 32 commission in the municipality having authority to disburse 33 funds for a particular municipal function without approval 34 of the governing body may similarly enter into insurance 35 -1- LSB 5543HC (2) 87 ko/rj 1/ 2
H.F. _____ agreements, procure liability insurance, adopt a self-insurance 1 program, or join a local government risk pool within the field 2 of its operation. 3 Sec. 2. Section 670.7, subsection 4, Code 2018, is amended 4 to read as follows: 5 4. The association of Iowa fairs or a fair as defined in 6 section 174.1 , and the governing body of a drainage or levee 7 district as provided in chapter 468, including a board as 8 defined in section 468.3, regardless of how the district has 9 been established or is organized, shall each be deemed to be a 10 municipality as defined in this chapter only for the purpose 11 of joining a local government risk pool as provided in this 12 section . 13 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 14 importance, takes effect upon enactment. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill relates to the classification of the governing 19 body of a drainage or levee district, including a board, 20 regardless of how the district has been established or 21 organized as a municipality for the purpose of joining a local 22 government risk pool. 23 The bill provides that a governing body of a municipality 24 may join and pay funds into a local government risk pool 25 to protect the municipality against all liability, loss of 26 property, or any other risk associated with the operation of 27 the municipality. 28 The bill takes effect upon enactment. 29 -2- LSB 5543HC (2) 87 ko/rj 2/ 2
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