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PAG LIN
1 1 Amend House File 2196 as follows:
1 2 #1. Page 1, by striking line 9 and inserting the
1 3 following: "follows, notwithstanding section 8.60:
1 4 (1) For the fiscal year beginning June 30, 1995,
1 5 and ending July 1, 1996, fifteen million dollars is
1 6 appropriated to the essential school repairs and
1 7 construction revolving fund created in section 297.43.
1 8 (2) For the fiscal years beginning July 1, 1997,
1 9 and ending June 30, 2002, all moneys received pursuant
1 10 to this lettered paragraph are appropriated to the
1 11 essential school repairs and construction revolving
1 12 fund created in section 297.43."
1 13 #2. Page 1, by inserting before line 10 the
1 14 following:
1 15 "Sec. . NEW SECTION. 16.152 ESSENTIAL SCHOOL
1 16 REPAIR AND CONSTRUCTION PROGRAM – FUNDING – BONDS
1 17 AND NOTES.
1 18 1. The authority shall cooperate with the
1 19 department of education in the creation,
1 20 administration, and financing of the essential school
1 21 repair and construction program established in
1 22 sections 297.41 through 297.46.
1 23 2. The authority may issue its bonds and notes for
1 24 the purpose of funding the revolving loan fund created
1 25 under section 297.43 and providing low-interest loans
1 26 to school districts to implement essential school
1 27 repair and construction plans approved by the
1 28 department of education.
1 29 3. The authority may issue its bonds and notes for
1 30 the purposes established and may enter into one or
1 31 more lending agreements or purchase agreements with
1 32 one or more bondholders or noteholders containing the
1 33 terms and conditions of the repayment of and the
1 34 security for the bonds or notes. The authority and
1 35 the bondholders or noteholders or a trustee agent
1 36 designated by the authority may enter into agreements
1 37 to provide for any of the following:
1 38 a. That the proceeds of the bonds and notes and
1 39 the investments of the proceeds may be received, held,
1 40 and disbursed by the authority or by a trustee or
1 41 agent designated by the authority.
1 42 b. That the bondholders or noteholders or a
1 43 trustee or agent designated by the authority may
1 44 collect, invest, and apply the amount payable under
1 45 the loan agreements or any other instruments securing
1 46 the debt obligations under the loan agreements.
1 47 c. That the bondholders or noteholders may enforce
1 48 the remedies provided in the loan agreements or other
1 49 instruments on their own behalf without the
1 50 appointment or designation of a trustee. If there is
2 1 a default in the principal of or interest on the bonds
2 2 or notes or in the performance of any agreement
2 3 contained in the loan agreements or other instruments,
2 4 the payment or performance may be enforced in
2 5 accordance with the loan agreement or other
2 6 instrument.
2 7 d. Other terms and conditions as deemed necessary
2 8 or appropriate by the authority.
2 9 4. The powers granted the authority under this
2 10 section are in addition to other powers contained in
2 11 this chapter. All other provisions of this chapter,
2 12 except section 16.28, subsection 4, apply to bonds or
2 13 notes issued and powers granted to the authority under
2 14 this section except to the extent they are
2 15 inconsistent with this section.
2 16 5. All bonds or notes issued by the authority in
2 17 connection with the program are exempt from taxation
2 18 by this state and the interest on the bonds or notes
2 19 is exempt from state income tax.
2 20 Sec. . NEW SECTION. 16.153 SECURITY –
2 21 RESERVE FUNDS – PLEDGES – NONLIABILITY –
2 22 IRREVOCABLE CONTRACTS.
2 23 1. The authority may provide in the resolution,
2 24 trust agreement, or other instrument authorizing the
2 25 issuance of its bonds or notes pursuant to section
2 26 16.152 that the principal of, premium, and interest on
2 27 the bonds or notes are payable from any of the
2 28 following and may pledge the same to its bonds and
2 29 notes:
2 30 a. The income and receipts or other money derived
2 31 from the projects financed with the proceeds of the
2 32 bonds or notes.
2 33 b. The income and receipts or other money derived
2 34 from designated projects whether or not the projects
2 35 are financed in whole or in part with the proceeds of
2 36 the bonds or notes.
2 37 c. The amounts on deposit in the revolving loan
2 38 fund.
2 39 d. The amounts payable to the department of
2 40 education by school districts pursuant to loan
2 41 agreements with school districts.
2 42 e. Any other funds or accounts established by the
2 43 authority in connection with the program or the sale
2 44 and issuance of its bonds or notes.
2 45 2. The authority may establish reserve funds, to
2 46 secure one or more issues of its bonds or notes. The
2 47 authority may deposit in a reserve fund established
2 48 under this subsection the proceeds of the sale of its
2 49 bonds or notes and other money made available from any
2 50 other source.
3 1 3. It is the intention of the general assembly
3 2 that a pledge made in respect of bonds or notes shall
3 3 be valid and binding from the time the pledge is made,
3 4 that the money or property so pledged and received
3 5 after the pledge by the authority shall immediately be
3 6 subject to the lien of the pledge without physical
3 7 delivery or further act, and that the lien of the
3 8 pledge shall be valid and binding as against all
3 9 parties having claims of any kind in tort, contract,
3 10 or otherwise against the authority whether or not the
3 11 parties have notice of the lien. Neither the
3 12 resolution, trust agreement, nor any other instrument
3 13 by which a pledge is created needs to be recorded or
3 14 filed under the Iowa uniform commercial code to be
3 15 valid, binding, or effective against the parties.
3 16 4. Neither the members of the authority nor
3 17 persons executing the bonds or notes are liable
3 18 personally on the bonds or notes or are subject to
3 19 personal liability or accountability by reason of the
3 20 issuance of the bonds or notes.
3 21 5. The bonds or notes issued by the authority are
3 22 not an indebtedness or other liability of the state or
3 23 of a political subdivision of the state within the
3 24 meaning of any constitutional or statutory debt
3 25 limitations but are special obligations of the
3 26 authority, and are payable solely from the income and
3 27 receipts or other funds or property of the department
3 28 of education, and the amounts on deposit in the
3 29 revolving loan fund, and the amounts payable to the
3 30 department under its loan agreements with the school
3 31 districts to the extent that the amounts are
3 32 designated in the resolution, trust agreement, or
3 33 other instrument of the authority authorizing the
3 34 issuance of the bonds or notes as being available as
3 35 security for such bonds or notes. The authority shall
3 36 not pledge the faith or credit of the state or of a
3 37 political subdivision of the state to the payment of
3 38 any bonds or notes. The issuance of any bonds or
3 39 notes by the authority does not directly, indirectly,
3 40 or contingently obligate the state or a political
3 41 subdivision of the state to apply money from, or levy
3 42 or pledge any form of taxation whatever to, the
3 43 payment of the bonds or notes.
3 44 6. The state pledges to and agrees with the
3 45 holders of bonds or notes issued under the essential
3 46 school repair and construction program that the state
3 47 will not limit or alter the rights and powers vested
3 48 in the authority to fulfill the terms of a contract
3 49 made by the authority with respect to the bonds or
3 50 notes, or in any way impair the rights and remedies of
4 1 the holders until the bonds or notes, together with
4 2 the interest on them including interest on unpaid
4 3 installments of interest, and all costs and expenses
4 4 in connection with an action or proceeding by or on
4 5 behalf of the holders, are fully met and discharged.
4 6 The authority is authorized to include this pledge and
4 7 agreement of the state, as it refers to holders of
4 8 bonds or notes of the authority, in a contract with
4 9 the holders.
4 10 Sec. . NEW SECTION. 16.154 ADOPTION OF RULES.
4 11 The authority shall adopt rules pursuant to chapter
4 12 17A to implement sections 16.152 and 16.153.
4 13 Sec. . Section 256.9, Code 1995, is amended by
4 14 adding the following new subsection:
4 15 NEW SUBSECTION. 49. Develop a system to
4 16 prioritize the school building repair and construction
4 17 needs of Iowa's school districts pursuant to section
4 18 297.42 and based upon age of the buildings and life
4 19 safety factors. In addition, the department shall
4 20 establish criteria for evaluating school district
4 21 essential school repair and construction plans as
4 22 provided in section 297.42.
4 23 Sec. . NEW SECTION. 297.41 FINDINGS.
4 24 The general assembly finds and declares that safe,
4 25 well-maintained school buildings designed for
4 26 efficiency are essential for Iowa's continued
4 27 educational success. The general assembly further
4 28 finds and declares that to meet present and future
4 29 school building needs, it is in the state's best
4 30 interest to encourage local school districts to
4 31 maintain and construct buildings to provide safe
4 32 learning environments. To assist school districts and
4 33 communities in repairing or replacing crumbling,
4 34 deteriorating, and outdated school buildings in the
4 35 state, it is the intent of the general assembly to
4 36 establish a state-sponsored mechanism to provide loans
4 37 to school districts at the lowest reasonable rates.
4 38 Sec. . NEW SECTION. 297.42 ESSENTIAL SCHOOL
4 39 REPAIR AND CONSTRUCTION PROGRAM.
4 40 1. An essential school repair and construction
4 41 program providing assistance to school districts for
4 42 funding the repair and construction of Iowa's school
4 43 buildings is established. A board of directors that
4 44 wishes to consider participating in the essential
4 45 school repair and construction program shall develop
4 46 and submit by October 1 to the department of education
4 47 for review an essential school repair and construction
4 48 plan which shall specify funding needs and meet the
4 49 criteria established by the department pursuant to
4 50 section 256.9, subsection 49.
5 1 2. If the department approves of the district
5 2 plan, the department shall establish a priority level
5 3 for the plan based upon criteria developed pursuant to
5 4 section 256.9, subsection 49, and shall consult with
5 5 the Iowa finance authority about the availability of
5 6 funding for loans pursuant to the loan program
5 7 established in sections 16.152 through 16.154. The
5 8 department shall notify districts of their plan
5 9 approval and loan eligibility based upon the funds
5 10 available through the Iowa finance authority and the
5 11 school district priority.
5 12 3. Upon notification of loan eligibility from the
5 13 department, the board of directors of a school
5 14 district may adopt a resolution to participate in the
5 15 essential school repair and construction program for a
5 16 period not exceeding five years. The resolution shall
5 17 include authorization for the board to levy the
5 18 essential school repair and construction property tax
5 19 levy to repay the loans. The board shall certify its
5 20 action to the department, and the department shall
5 21 notify the Iowa finance authority to make loans
5 22 available.
5 23 4. Districts which have approved plans but the
5 24 priority level of the district is too low to receive
5 25 funding may adopt the essential school repair and
5 26 construction levy. The procedure specified in section
5 27 257.18 for the instructional support program,
5 28 including, but not limited to, provisions relating to
5 29 a public hearing, publication of notice, adoption of a
5 30 resolution, election and petition for election shall
5 31 be used for the levy. The property tax shall be
5 32 levied pursuant to section 297.44.
5 33 5. Participation in the essential school repair
5 34 and construction program is not affected by a change
5 35 in the boundaries of the school district, except as
5 36 otherwise provided in this section. If each school
5 37 district involved in a school reorganization under
5 38 chapter 275 has approved an essential school repair
5 39 and construction levy, the existing essential school
5 40 repair and construction program is in effect for the
5 41 reorganized district for the least amount and the
5 42 shortest time for which it is in effect in any of the
5 43 districts.
5 44 Sec. . NEW SECTION. 297.43 ESSENTIAL SCHOOL
5 45 REPAIRS AND CONSTRUCTION REVOLVING FUND.
5 46 1. An essential school repair and construction
5 47 revolving fund is created in the office of the
5 48 treasurer of state under the control of the Iowa
5 49 finance authority. The revolving loan fund shall
5 50 include sums appropriated to the revolving loan fund
6 1 by the general assembly and all receipts received by
6 2 the revolving loan fund. All moneys appropriated to
6 3 and deposited in the revolving fund are appropriated
6 4 and shall be used for the sole purpose of making low-
6 5 interest loans to school districts to finance all or
6 6 part of the cost of implementing essential school
6 7 repair and construction plans approved by the
6 8 department of education. The moneys in the revolving
6 9 loan fund are not considered part of the general fund
6 10 of the state, are not subject to appropriation for any
6 11 other purpose by the general assembly, and in
6 12 determining a general fund balance at the close of a
6 13 fiscal year shall not be included in the general fund
6 14 of the state. Notwithstanding section 8.33, moneys
6 15 remaining in the revolving fund at the close of a
6 16 fiscal year shall remain in the revolving loan fund to
6 17 be used for purposes of the fund. The revolving loan
6 18 fund is a dedicated fund under the administration and
6 19 control of the authority and subject to section 16.31.
6 20 Moneys on deposit in the revolving loan fund shall be
6 21 invested by the treasurer of state in cooperation with
6 22 the authority, and the income from the investments
6 23 shall be credited to and deposited in the revolving
6 24 loan fund.
6 25 2. The department and the authority may establish
6 26 and maintain other funds or accounts determined to be
6 27 necessary to carry out the purposes of this part and
6 28 shall provide for the funding, administration,
6 29 investment, restrictions, and disposition of the funds
6 30 and accounts.
6 31 3. The department and the authority shall
6 32 establish fiscal controls and accounting procedures
6 33 during appropriate accounting periods for payments and
6 34 disbursements received and made by the revolving loan
6 35 fund, and to fund balances at the beginning and end of
6 36 the accounting periods.
6 37 4. For purposes of sections 297.41 through 297.46,
6 38 "authority" means the Iowa finance authority
6 39 established in section 16.2.
6 40 Sec. . NEW SECTION. 297.44 ESSENTIAL SCHOOL
6 41 REPAIRS AND CONSTRUCTION PROPERTY TAX.
6 42 A school district may certify an essential school
6 43 repair and construction property tax levy in an amount
6 44 not to exceed one dollar per thousand dollars of
6 45 taxable value in the district each year. Moneys
6 46 received by a district from the property tax levy and
6 47 from the revolving loan fund for the essential school
6 48 repair and construction program shall be deposited in
6 49 the district's capital projects fund under section
6 50 298A.9.
7 1 Certification of a board's intent to participate
7 2 for a budget year, the method of funding, and the
7 3 amount to be raised shall be made to the department of
7 4 management not later than April 15 of the base year.
7 5 Sec. . NEW SECTION. 297.45 POWERS AND DUTIES
7 6 OF THE DIRECTOR OF THE DEPARTMENT OF EDUCATION.
7 7 The director of the department of education shall:
7 8 1. Process and review essential school repair and
7 9 construction plans submitted by school districts
7 10 pursuant to section 297.42.
7 11 2. Approve loan applications of school districts
7 12 that satisfy the rules adopted by the state board of
7 13 education.
7 14 3. Process and review all documents relating to
7 15 projects and the extending of loans.
7 16 4. Prepare and process, in coordination with the
7 17 authority, documents relating to the extending of
7 18 loans to school districts, the sale and issuance of
7 19 bonds, notes, or other obligations of the authority
7 20 relating to the program, and the administration of the
7 21 program.
7 22 5. Include in the budget prepared pursuant to
7 23 section 256.9, subsection 6, an annual budget for the
7 24 administration of the program and the use and
7 25 disposition of amounts on deposit in the revolving
7 26 fund.
7 27 6. Charge each school district receiving a loan
7 28 from the revolving loan fund a loan origination fee
7 29 and an annual loan servicing fee. The amount of the
7 30 loan origination fees and the loan servicing fees
7 31 established shall be relative to the amount of a loan
7 32 made from the revolving loan fund. Notwithstanding
7 33 section 297.43, subsection 1, the director shall
7 34 deposit the receipts from the loan origination fees
7 35 and the loan servicing fees in a separate account
7 36 within the revolving fund for administration of the
7 37 program.
7 38 7. Consult with and receive the approval of the
7 39 authority concerning the terms and conditions of loan
7 40 agreements with school districts as to the financial
7 41 integrity of the loan.
7 42 8. Perform other acts and assume other duties and
7 43 responsibilities necessary for the operation of the
7 44 program.
7 45 Sec. . NEW SECTION. 297.46 CONTINUATION OF
7 46 ESSENTIAL SCHOOL REPAIRS AND CONSTRUCTION PROGRAM.
7 47 At the expiration of the period for which the
7 48 essential school repair and construction program was
7 49 adopted, the program may be extended by a school
7 50 district for a period not exceeding five or ten years
8 1 in the manner provided in section 297.42.
8 2 If an election is held on the adoption of the
8 3 program, and the voters do not approve adoption of the
8 4 essential school repair and construction program as
8 5 provided in section 297.42, the board shall wait at
8 6 least one hundred twenty days following the election
8 7 before taking action to adopt the program or resubmit
8 8 the proposition."
8 9 #3. Title page, line 2, by inserting after the
8 10 word "fund" the following: "and making appropriations
8 11 from the rebuild Iowa infrastructure fund,".
8 12 #4. By renumbering as necessary.
8 13
8 14
8 15
8 16 SHOULTZ of Black Hawk
8 17
8 18
8 19
8 20 WITT of Black Hawk
8 21 HF 2196.501 76
8 22 js/jw
Text: H05080 Text: H05082 Text: H05000 - H05099 Text: H Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
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