HOUSE FILE 62

BY  WINCKLER, MASCHER, LENSING, BERRY, and WESSEL-KROESCHELL

A BILL FOR

An Act relating to the allocation and issuance of qualified student loan bonds under the private activity bond allocation Act.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 7C.4A, subsection 3, Code 2011, is amended to read as follows:
   3.  Sixteen percent of the state ceiling shall be allocated to qualified student loan bonds. However, at any time during the calendar year the governor’s designee, with the approval of the Iowa student loan liquidity corporation college student aid commission, may determine that a lesser amount need be allocated to qualified student loan bonds and on that date the lesser amount shall be the amount allocated for those bonds and the excess shall be allocated under subsection 7.
   Sec. 2.  Section 261.38, subsection 5, Code 2011, is amended to read as follows:
   5.
  a.  The commission may enter into agreementswith the Iowa student loan liquidity corporation in order to increase access for students to education loan programs that the commission determines meet the education needs of Iowa residents. The agreements shall permit the establishment, funding, and operation of alternative education loan programs, as described in section 144(b)(1)(B) of the Internal Revenue Code of 1986 as amended, as defined in section 422.3, in addition to programs permitted under the federal Higher Education Act of 1965. In accordance with those agreements, the Iowa qualified student loan liquidity corporation bond issuer may issue bonds, notes, or other obligations to the public and others for the purpose of funding the alternative education loan programs. This authority to issue bonds, notes, or other obligations shall be in addition to the authority established in the articles of incorporation and bylaws of the Iowa qualified student loan liquidity corporation bond issuer.
   b.  Bonds, notes, or other obligations issued by the Iowa qualified student loan liquidity corporation bond issuer are not an obligation of this state or any political subdivision of this state within the meaning of any constitutional or statutory debt limitations, but are special obligations of the Iowa qualified student loan liquidity corporation bond issuer, and the corporation qualified student loan bond issuer shall not pledge the credit or taxing power of this state or any political subdivision of this state, or make its debts payable out of any of the moneys except those of the corporation qualified student loan bond issuer.
EXPLANATION
   This bill removes references to the Iowa student loan liquidity corporation from certain provisions of the Code.
   The Code provision that allocates 16 percent of the state ceiling to a political subdivision for purposes of qualified student loan bonds under the private activity bond allocation Act is modified to provide that the college student aid commission, rather than the corporation, may approve the governor’s designee’s determination that a lesser amount need be allocated to qualified student loan bonds. The bill also modifies a provision that permits the commission to enter into agreements with the corporation in order to increase access for students to education loan programs, by replacing references to the corporation with references to the qualified student loan bond issuer, which is the designation the corporation currently holds.