House File 2215 - Enrolled

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1	3	AN ACT	
1	5	AND SINGLE=PROJECT LIMITATIONS.	
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HOUSE FILE 2215

1	4 RELATING TO PRIVATE ACTIVITY BOND ALLOCATION PROCEDURES

1	7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1	8
1	9	Section 1.	Section 7C.4A, subsection 5, Code 2007, is
1 10 amended to read as follows:
1 11	5.	Eighteen percent of the state ceiling shall be
1 12 allocated to bonds issued by political subdivisions to finance
1 13 a qualified industry or industries for the manufacturing,
1 14 processing, or assembly of agricultural or manufactured
1 15 products even though the processed products may require
1 16 further treatment before delivery to the ultimate consumer.	A
  1 17 single project allocated a portion of the state ceiling
  1 18 pursuant to this subsection shall not receive an allocation in
  1 19 excess of ten million dollars in any calendar year.
1 20	Sec. 2.	Section 7C.4A, subsection 7, paragraph a, Code
1 21 2007, is amended to read as follows:
1 22	a.	The amount of the state ceiling which is not otherwise
1 23 allocated under subsections 1 through 5, and after June 30,
1 24 the amount of the state ceiling reserved under subsection 6
1 25 and not allocated, shall be allocated to all bonds requiring
1 26 an allocation under section 146 of the Internal Revenue Code
1 27 without priority for any type of bond over another, except as
1 28 otherwise provided in sections 7C.5 and 7C.11.	A single
  1 29 project allocated a portion of the state ceiling pursuant to
  1 30 this subsection shall not receive an allocation in excess of
  1 31 ten million dollars in any calendar year.
1 32	Sec. 3.	Section 7C.7, Code 2007, is amended to read as
1 33 follows:
1 34	7C.7	CERTIFICATION OF ALLOCATION.
35	Upon the receipt of a completed application pursuant to
1 section 7C.6, the governor's designee shall promptly certify
2	2 to the political subdivision the amount of the state ceiling
2	3 allocated to the bonds for the purpose or project with respect
2	4 to which the application was submitted.	The allocation shall
2	5 remain valid for thirty one hundred twenty days from the date
2	6 the allocation was certified, subject to the following
2	7 conditions:
2	8	1.	If the bonds are issued and delivered for the purpose
2	9 or project within the thirty=day one=hundred=twenty=day period
2 10 or the forty=five day thirty=day extension period provided in
2 11 subsection 2, the political subdivision or its representative
2 12 shall within ten days following the issuance and delivery of
2 13 the bonds or not later than June 30 of that year, if the bonds
2 14 were issued and delivered on or before that date, file with
2 15 the governor's designee, in the form or manner the governor's
2 16 designee may prescribe, a notification of the date of issuance
2 17 and the delivery of the bonds, and the actual principal amount
2 18 of bonds issued and delivered.	The filing of the notification
2 19 shall be done by actual delivery or by posting in a United
2 20 States post office depository with correct first class postage
2 21 paid.	If the actual principal amount of bonds issued and
2 22 delivered is less than the amount of the allocation, the
2 23 amount of the allocation is automatically reduced to the
2 24 actual principal amount of the bonds issued and delivered.
2 25	2.	If the political subdivision does not reasonably expect
2 26 to issue and deliver the bonds within the thirty=day
2 27 one=hundred=twenty=day period and evidence of an executed,
2 28 valid and binding agreement to purchase the bonds is obtained
2 29 from an entity with the legal ability to purchase and this
2 30 agreement is filed with the governor's designee, the
2 31 thirty=day one=hundred=twenty=day allocation period is
2 32 automatically extended for an additional forty=five thirty
2 33 days.	The allocation period shall not be extended beyond that
2 34 additional forty=five thirty days.
35	3.	The allocation is no longer valid unless the bonds are
1 issued and delivered prior to December 24 or in the case of
3	2 bonds described in section 7C.11 are issued and delivered
3	3 prior to December 31 of the calendar year in which the

3	4 allocation is certified, except as provided in section 7C.8.
3	5	Sec. 4.	Section 7C.9, Code 2007, is amended to read as
3	6 follows:
3	7	7C.9	NONBUSINESS DAYS.
3	8	If the expiration date of either the thirty=day
3	9 one=hundred=twenty=day period or the forty=five day thirty=day
3 10 extension period described in subsection 1 or 2 of section
3 11 7C.7 is a Saturday, Sunday or any day on which the offices of
3 12 the state, banking institutions or savings and loan
3 13 associations in the state are authorized or required to close,
3 14 the expiration date is extended to the first day thereafter
3 15 which is not a Saturday, Sunday or other previously described 3 16 day.
3 17
3 18
3 19
3 20	PATRICK J. MURPHY
3 21	Speaker of the House
3 22
3 23
3 24
3 25	JOHN P. KIBBIE
3 26	President of the Senate
3 27
3 28	I hereby certify that this bill originated in the House and
3 29 is known as House File 2215, Eighty=second General Assembly. 3 30
3 31
3 32
3 33	MARK BRANDSGARD
3 34	Chief Clerk of the House
35 Approved	, 2008
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4	4 CHESTER J. CULVER
4	5 Governor