Text: SF00080 Text: SF00082 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 423.24, subsection 1, paragraph a, Code 1 2 1995, is amended to read as follows: 1 3 a. Twenty-five percent of all such revenue, up to a 1 4 maximum ofthreefour millioneight hundred twenty-five1 5 seventy-five thousand dollars per quarter, shall be deposited 1 6 into and credited to the Iowa comprehensive petroleum 1 7 underground storage tank fund created in section 455G.3, and 1 8 the moneys so deposited are a continuing appropriation for 1 9 expenditure under chapter 455G, and moneys so appropriated 1 10 shall not be used for other purposes. 1 11 Sec. 2. Section 424.3, subsection 5, Code 1995, is amended 1 12 to read as follows: 1 13 5. The cost factor is an amount per gallon of diminution 1 14 determined by the board pursuant to this subsection. The 1 15 board, after public hearing, shall determine, or shall adjust, 1 16 the cost factor to the greater of either an amount reasonably 1 17 calculated to generate an annual average revenue, year to 1 18 year, offifteensixteen million three hundred thousand 1 19 dollars from the charge, excluding penalties and interest, or 1 20 ten dollars. The board may determine or adjust the cost 1 21 factor at any time but shall at minimum determine the cost 1 22 factor at least once each fiscal year. 1 23 Sec. 3. Section 455G.3, subsection 3, Code 1995, is 1 24 amended by adding the following new paragraph: 1 25 NEW PARAGRAPH. d. To establish a marketability fund to 1 26 provide purchasers of clean sites and financial institutions 1 27 indemnification for future cleanup costs as provided by 1 28 section 455G.21. 1 29 Sec. 4. Section 455G.3, Code 1995, is amended by adding 1 30 the following new subsection: 1 31 NEW SUBSECTION. 6. Of the moneys credited to the fund 1 32 from the environmental protection charge under section 424.3, 1 33 one million dollars per year shall be allocated to the 1 34 marketability fund to be used for the purposes stated in 1 35 section 455G.21. 2 1 Sec. 5. NEW SECTION. 455G.21 MARKETABILITY FUND. 2 2 1. A marketability fund is created as a separate fund in 2 3 the state treasury under the control of the board. The board 2 4 shall administer the fund. Notwithstanding section 8.33, 2 5 moneys remaining in the fund at the end of each fiscal year 2 6 shall not revert to the general fund but shall remain in the 2 7 marketability fund. The fund shall include the following 2 8 moneys: 2 9 a. One million dollars per year from the environmental 2 10 protection charge pursuant to section 455G.3. 2 11 b. There shall be appropriated from the general fund of 2 12 the state to the fund created under this section, for the 2 13 fiscal year beginning July 1, 1995, and ending June 30, 1996, 2 14 four million dollars. For each fiscal year thereafter, an 2 15 amount shall be appropriated which shall be an amount 2 16 sufficient to maintain the ending balance of the fund at five 2 17 million dollars but the amount appropriated shall not exceed 2 18 four million dollars. 2 19 c. Notwithstanding section 12C.7, interest or other income 2 20 specifically allocated to the fund. 2 21 2. The purpose of the fund is to provide purchasers of 2 22 property and financial institutions who are not otherwise 2 23 eligible to receive benefits under this chapter, 2 24 indemnification for the costs of remediating a site for which 2 25 the owner or financial institution is considered to be a 2 26 responsible party. For a financial institution to be eligible 2 27 for benefits under this section, the financial institution 2 28 must have accepted the site as collateral for a loan. 2 29 3. To claim benefits under the marketability fund, the 2 30 owner of contaminated property or the financial institution 2 31 shall file notice with the board within ninety days of being 2 32 notified by the department of natural resources that the site 2 33 is contaminated and requires remediation. The board shall 2 34 provide a potential cost of remediation which shall be based 2 35 upon current contamination levels and costs in effect at the 3 1 time of issuance. 3 2 4. Benefits shall be based upon the following: 3 3 a. An owner of property who has a net worth of one hundred 3 4 thousand dollars or less shall receive one hundred percent of 3 5 the costs of cleanup, an owner with a net worth which is 3 6 greater than one hundred thousand dollars but less than five 3 7 hundred thousand dollars shall receive seventy-five percent of 3 8 the costs of cleanup and shall be required to ensure payment 3 9 of the twenty-five percent deductible, but not to exceed fifty 3 10 percent of the owner's net worth. An owner with a net worth 3 11 of five hundred thousand dollars or greater shall receive 3 12 sixty percent of the costs of cleanup and shall be required to 3 13 ensure payment of the forty percent deductible, not to exceed 3 14 fifty percent of the owner's net worth. 3 15 b. A financial institution shall have the amount of 3 16 benefits determined by the net worth of the former owner at 3 17 the time the loan was made by the financial institution. 3 18 Benefits shall be determined in accordance with paragraph "a". 3 19 c. Net worth of the owner of property shall be determined 3 20 as of the date of purchase of the property which is the 3 21 subject of the remedial action. Net worth for financial 3 22 institutions shall be determined as of the date the loan was 3 23 initially made to the former owner by the financial 3 24 institution. An entity shall be required to include in a 3 25 financial statement the personal worth of all owners if the 3 26 financial statement indicates that the owner is a corporation. 3 27 5. The department of natural resources shall determine if 3 28 a site requires remediation. If an owner proceeds with 3 29 cleanup without a determination from the department that 3 30 cleanup is necessary, the owner is not eligible for benefits 3 31 under this section. Sites with monitoring wells shall be 3 32 required to maintain the monitoring wells and shall be 3 33 required to monitor annually or as directed by the department. 3 34 Sites that do not have monitoring wells shall not be required 3 35 to monitor unless the department decides at a future date that 4 1 the site requires monitoring. 4 2 6. This section is repealed on January 1, 2020, at which 4 3 time the owner of record becomes the responsible party and the 4 4 marketability fund balance reverts to the general fund of the 4 5 state. 4 6 EXPLANATION 4 7 This bill increases by $1 million the amount of the 4 8 environmental protection charge that is allocated to the 4 9 underground storage tank fund. 4 10 The bill creates a marketability fund to provide purchasers 4 11 of property who are not otherwise eligible for benefits under 4 12 chapter 455G, and financial institutions that have made loans 4 13 using property as collateral, with remedial benefits if 4 14 cleanup is ordered on the site in the future. The 4 15 marketability fund is funded from a $1 million allocation from 4 16 the environmental protection charge and a $4 million yearly 4 17 appropriation from the general fund of the state. The general 4 18 fund appropriation is a yearly appropriation, except that only 4 19 that amount of money which will maintain the fund at a $5 4 20 million level is to be appropriated each year. The fund is 4 21 administered by the underground storage tank fund board. 4 22 The marketability fund provides purchasers of property who 4 23 are not otherwise eligible for benefits under chapter 455G, 4 24 benefits for the costs of remediation if cleanup is ordered on 4 25 the site in the future. The fund will pay 100 percent of the 4 26 costs of cleanup for owners with a net worth of $100,000 or 4 27 less, and 75 percent of the costs of cleanup for owners with a 4 28 net worth which is greater than $100,000 but less than 4 29 $500,000, however, the owner is required to assure payment of 4 30 the 25 percent deductible, but not to exceed 50 percent of the 4 31 owner's net worth. The fund will pay 60 percent of the costs 4 32 of cleanup for owners with a net worth of $500,000 or greater, 4 33 however, the owner is required to assure payment of the 40 4 34 percent deductible, but not to exceed 50 percent of the 4 35 owner's net worth. A financial institution is eligible for 5 1 the same benefits as the person to whom the financial 5 2 institution made the loan for which the site was accepted as 5 3 collateral. Net worth is to be determined at the time the 5 4 loan was made. The marketability fund is repealed on January 5 5 1, 2020. 5 6 LSB 1714SS 76 5 7 js/jw/5
Text: SF00080 Text: SF00082 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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