HF 2396 (LSB 5227HV (1) 86)

HOUSE FILE 2396

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO HSB 629)

(COMPANION TO 5227SV BY COMMITTEE ON ECONOMIC GROWTH)

A BILL FOR

An Act concerning the issuance of bonds authorized by the Iowa finance authority relating to projects and bond issuers regardless of location.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 16.1, subsection 32, paragraph a, Code 2016, is amended to read as follows:
   a.  Real or personal property connected with a facility to be acquired, constructed, financed, refinanced, improved, or equipped pursuant to one or more of the programs, including any such property located outside of the state if the authority has conclusively determined that the entity financing or refinancing property located outside the state, or an affiliate of such entity, is also engaged in the financing or refinancing of property located within the state, or, alternatively, the entity seeking the financing or refinancing, or an affiliate of such entity, maintains a presence within the state.
    Sec. 2.  Section 16.5, subsection 1, paragraph a, Code 2016, is amended to read as follows:
   a.  Issue its negotiable bonds and notes as provided in this chapter in order to finance its programs.  In addition, the authority may issue bonds, notes, or other obligations for public or private entities for the purpose of financing any project regardless of location.
    Sec. 3.  Section 16.26, Code 2016, is amended by adding the following new subsection:
   NEW SUBSECTION.  10.  In connection with any financing which involves an out-of-state issuer issuing bonds, notes, or other obligations for facilities located in the state, the authority is designated as the only governmental unit in the state that may conduct the public hearing required by section 147(f) of the federal Internal Revenue Code, as defined in section 422.3, and the governor of Iowa is designated as the applicable elected representative pursuant to section 147(f) of the federal Internal Revenue Code, as defined in section 422.3.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill concerns the Iowa finance authority.
   Code section 16.1(32)(a), defining “project” for purposes of the Iowa finance authority programs, is amended to include projects for property located outside of the state if the entity seeking the financing of the project has some connection to the state.
   Code section 16.5, describing the general powers of the Iowa finance authority, is amended to provide that the Iowa finance authority can issue bonds, notes, or other obligations for public or private entities for the purpose of financing any project regardless of location.
   Code section 16.26, concerning bonds and notes, is amended to provide that for an out-of-state issuer issuing certain bonds, notes, or other obligations, the authority is designated as the governmental unit that may conduct the public hearing required by the federal Internal Revenue Code and the governor of Iowa is designated as the applicable elected representative pursuant to the Internal Revenue Code.