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PAG LIN 1 1 Section 1. Section 8D.11, subsection 1, Code 1995, is 1 2 amended to read as follows: 1 3 1. The commission may purchase,lease-purchase,lease, and 1 4 improve property, equipment, and services for 1 5 telecommunications for public and private agencies and may 1 6 dispose of property and equipment when not necessary for its 1 7 purposes. However, the commission shall not enter into a 1 8 contract for the purchase,lease-purchase,lease, or 1 9 improvement of property, equipment, or services for 1 10 telecommunications pursuant to this subsection in an amount 1 11 greater thanfive hundred thousandone million dollars without 1 12 prior authorization by a constitutional majority of each house 1 13 of the general assembly, or approval by the legislative 1 14 council if the general assembly is not in session. The 1 15 commission shall not issue any bonding or other long-term 1 16 financing arrangements as defined in section 12.30, subsection 1 17 1, paragraph "b". Real or personal property to be purchased 1 18 by the commission through the use of a financing agreement 1 19 shall be done in accordance with the provisions of section 1 20 12.28, provided, however, that the commission shall not 1 21 purchase property, equipment, or services for 1 22 telecommunications pursuant to this subsection in an amount 1 23 greater than one million dollars without prior authorization 1 24 by a constitutional majority of each house of the general 1 25 assembly, or approval by the legislative council if the 1 26 general assembly is not in session. 1 27 1A. The commission also shall not provide or resell 1 28 communications services to entities other than public and 1 29 private agencies. The public or private agency shall not 1 30 provide communication services of the network to another 1 31 entity unless otherwise authorized pursuant to this chapter. 1 32 The commission may arrange for joint use of available services 1 33 and facilities, and may enter into leases and agreements with 1 34 private and public agencies with respect to the Iowa 1 35 communications network, and public agencies are authorized to 2 1 enter into leases and agreements with respect to the network 2 2 for their use and operation. Rentals and other amounts due 2 3 under the agreements or leases entered into pursuant to this 2 4 section by a state agency are payable from funds annually 2 5 appropriated by the general assembly or from other funds 2 6 legally available. Other public agencies may pay the rental 2 7 costs and other amounts due under an agreement or lease from 2 8 their annual budgeted funds or other funds legally available 2 9 or to become available. 2 10 1B. This section comprises a complete and independent 2 11 authorization and procedure for a public agency, with the 2 12 approval of the commission, to enter into a lease or agreement 2 13and related security enhancement arrangementsand this section 2 14 is not a qualification of any other powers which a public 2 15 agency may possess and the authorizations and powers granted 2 16 under this section are not subject to the terms, requirements, 2 17 or limitations of any other provisions of law, except that the 2 18 commission must comply with the provisions of section 12.28 2 19 when entering into financing agreements for the purchase of 2 20 real or personal property. All moneys received by the 2 21 commission from agreements and leases entered into pursuant to 2 22 this section with private and public agencies shall be 2 23 deposited in the Iowa communications network fund. 2 24 Sec. 2. NEW SECTION. 12.28 CENTRALIZED FINANCING FOR 2 25 STATE AGENCY PURCHASE OF REAL AND PERSONAL PROPERTY. 2 26 1. As used in this section, unless the context otherwise 2 27 requires: 2 28 a. "Financing agreement" means any lease, lease-purchase 2 29 agreement, or installment acquisition contract in which the 2 30 lessee may purchase the leased property at a price which is 2 31 less than the fair market value of the property at the end of 2 32 the lease term, or any lease, agreement, or transaction which 2 33 would be considered under criteria established by the Internal 2 34 Revenue Service to be a conditional sale agreement for tax 2 35 purposes. 3 1 b. "State agency" means a board, commission, bureau, 3 2 division, office, department, or branch of state government. 3 3 However, state agency does not mean the state board of 3 4 regents, institutions governed by the board of regents, or 3 5 authorities created under chapter 16, 16A, 175, 257C, 261A, or 3 6 327I. 3 7 2. The treasurer of state shall have sole authority to 3 8 enter into financing agreements on behalf of state agencies. 3 9 The treasurer of state may enter into financing agreements, 3 10 including master lease-purchase agreements, for the purpose of 3 11 funding state agency requests for the financing of real or 3 12 personal property, wherever located within the state, 3 13 including equipment, buildings, facilities, and structures, or 3 14 additions or improvements to existing buildings, facilities, 3 15 and structures. Subject to the selection procedures of 3 16 section 12.30, the treasurer may employ financial consultants, 3 17 banks, trustees, insurers, underwriters, accountants, 3 18 attorneys, and other advisors or consultants as necessary to 3 19 implement the provisions of this section. The costs of 3 20 professional services and any other costs of entering into the 3 21 financing agreements may be included in the financing 3 22 agreement as a cost of the property being financed. 3 23 3. The financing agreement may provide for ultimate 3 24 ownership of the property by the state. Title to all property 3 25 acquired in this manner shall be taken and held in the name of 3 26 the state. The state shall be the lessee or contracting party 3 27 under all financing agreements entered into pursuant to this 3 28 section. The financing agreements may contain provisions 3 29 pertaining, but not limited to, interest, term, prepayment, 3 30 and the state's obligation to make payments on the financing 3 31 agreement beyond the current budget year subject to 3 32 availability of appropriations. All projects financed under 3 33 this section shall be deemed to be for an essential 3 34 governmental purpose. 3 35 4. The treasurer of state may contract for additional 4 1 security or liquidity for a financing agreement and may enter 4 2 into agreements for letters of credit, lines of credit, 4 3 insurance, or other forms of security with respect to rental 4 4 and other payments due under a financing agreement. Fees for 4 5 the costs of additional security or liquidity are a cost of 4 6 entering into the financing agreement and may be paid from 4 7 funds annually appropriated by the general assembly to the 4 8 state agency for which the property is being obtained, from 4 9 other funds legally available, or from proceeds of the 4 10 financing agreement. The provision of a financing agreement 4 11 which provides that a portion of the periodic rental or lease 4 12 payment be applied as interest is subject to chapter 74A. 4 13 Other laws relating to interest rates do not apply. Chapter 4 14 75 does not apply to financing agreements entered into 4 15 pursuant to this section. 4 16 5. Payments and other costs due under financing agreements 4 17 entered into pursuant to this section shall be payable from 4 18 funds annually appropriated by the general assembly to the 4 19 state agency for which the property is being obtained or from 4 20 other funds legally available. The treasurer of state, in 4 21 cooperation with the department of revenue and finance, shall 4 22 implement procedures to ensure that state agencies are timely 4 23 in making payments due under the financing agreements. 4 24 6. The maximum principal amount of financing agreements 4 25 which the treasurer of state can enter into shall be one 4 26 million dollars per state agency in a fiscal year, subject to 4 27 the requirements of section 8.46. For the fiscal year, the 4 28 treasurer of state shall not enter into more than one million 4 29 dollars of financing agreements per state agency, not 4 30 considering interest expense. However, the treasurer of state 4 31 may enter into financing agreements in excess of the one 4 32 million dollar per agency per fiscal year limit if a 4 33 constitutional majority of each house of the general assembly, 4 34 or the legislative council if the general assembly is not in 4 35 session, and the governor, authorize the treasurer of state to 5 1 enter into additional financing agreements above the one 5 2 million dollar authorization contained in this section. The 5 3 treasurer of state shall not enter into a financing agreement 5 4 for real or personal property which is to be constructed for 5 5 use as a prison or prison-related facility without prior 5 6 authorization by a constitutional majority of each house of 5 7 the general assembly and approval by the governor of the use, 5 8 location, and maximum cost, not including interest expense, of 5 9 the real or personal property to be financed. However, 5 10 financing agreements for an energy conservation measure, as 5 11 defined in section 7D.34, are exempt from the provisions of 5 12 this subsection, but are subject to the requirements of 5 13 section 7D.34 or 473.20A. In addition, financing agreements 5 14 funded through the materials and equipment revolving fund 5 15 established in section 307.47 are exempt from the provisions 5 16 of this subsection. 5 17 7. The treasurer of state shall decide upon the most 5 18 economical method of financing a state agency's request for 5 19 funds. The treasurer of state may utilize master lease- 5 20 purchase agreements, issue certificates of participation in 5 21 lease-purchase agreements, or use any other financing method 5 22 or method of sale which the treasurer believes will provide 5 23 savings to the state in issuance or interest costs. 5 24 8. A financing agreement to which the state is a party is 5 25 an obligation of the state for purposes of chapters 502 and 5 26 636, and is a lawful investment for banks, trust companies, 5 27 building and loan associations, savings and loan associations, 5 28 investments companies, insurance companies, insurance 5 29 associations, executors, guardians, trustees, and other 5 30 fiduciaries responsible for the investment of funds. 5 31 9. Publication of any notice, whether under section 73A.12 5 32 or otherwise, and other or further proceedings with respect to 5 33 the financing agreements referred to in this section are not 5 34 required except as set forth in this section, notwithstanding 5 35 any provisions of other statutes of the state to the contrary. 6 1 Sec. 3. Section 18.12, subsection 10, Code Supplement 6 2 1995, is amended to read as follows: 6 3 10.On behalf of the department, enter into lease-purchase6 4contracts for real or personal property, wherever located6 5within the state, to be used for buildings, facilities, and6 6structures, or for additions or improvements to existing6 7buildings, facilities, and structures, to carry out the6 8provisions of this section or for the proper use and benefit6 9of the state and its state agencies on the following terms and6 10conditions:6 11a. TheUnless otherwise provided by law, the director 6 12 shall coordinate the location, design, plans and 6 13 specifications, construction, and ultimate use of the real or 6 14 personal propertylease-purchased with theto be purchased by 6 15 a state agency for whose benefit and use the property is being 6 16 obtainedand the terms and conditions of the lease-purchase6 17contract with both the state agency for whose benefit and use6 18the property is being obtained and the treasurer of state. If 6 19 the purchase of real or personal property is to be financed 6 20 pursuant to section 12.28, the department shall cooperate with 6 21 the treasurer of state in providing the information necessary 6 22 to complete the financing of the property. Upon awarding the 6 23 contract for construction of a building or for site 6 24 development, the director shall have sole authority to 6 25 administer the contract. 6 26b. The lease-purchase contract may provide for ultimate6 27ownership of the property by the state. Title to all property6 28acquired in this manner shall be taken and held in the name of6 29the state. The state shall be the lessee or contracting party6 30under all lease-purchase contracts entered into pursuant to6 31this section. The lease-purchase contract may contain6 32provisions similar to provisions customarily found in lease-6 33purchase contracts between private persons, including, but not6 34limited to, provisions prohibiting the acquisition or use by6 35the lessee of competing property or property in substitution7 1for the lease-purchased property, obligating the lessee to pay7 2costs of operation, maintenance, insurance, and taxes relating7 3to the property, and permitting the lessor to retain a7 4security interest in the property lease-purchased, until title7 5passes to the state, which may be assigned or pledged by the7 6lessor. The director may contract for additional security or7 7liquidity for a lease-purchase contract and may enter into7 8agreements for letters of credit, lines of credit, insurance,7 9or other forms of security with respect to rental and other7 10payments due under a lease-purchase contract. Fees for the7 11costs of additional security or liquidity are a cost of7 12entering into the lease-purchase contract and may be paid from7 13funds annually appropriated by the general assembly to the7 14state agency for which the property is being obtained or from7 15other funds legally available. The lease-purchase contract7 16may include the costs of entering into the lease-purchase7 17contract as a cost of the lease-purchased property. The7 18provision of a lease-purchase contract which provides that a7 19portion of the periodic rental payment be applied as interest7 20is subject to chapter 74A. Other laws relating to interest7 21rates do not apply. Chapter 75 does not apply to lease-7 22purchase contracts entered into pursuant to this section.7 23Rental and other costs due under lease-purchase contracts7 24entered into pursuant to this section shall be payable from7 25funds annually appropriated by the general assembly to the7 26state agency for which the property is being obtained or from7 27other funds legally available.7 28c. A lease-purchase contract to which the state is a party7 29is an obligation of a state for purposes of chapters 502 and7 30636, and is a lawful investment for banks, trust companies,7 31building and loan associations, savings and loan associations,7 32investment companies, insurance companies, insurance7 33associations, executors, guardians, trustees, and other7 34fiduciaries responsible for the investment of funds.7 35d. The director shall not enter into lease-purchase8 1contracts pursuant to this section without prior authorization8 2by a constitutional majority of each house of the general8 3assembly and approval by the governor of the use, location,8 4and maximum cost, not including interest expense, of the real8 5or personal property to be lease-purchased. However, the8 6director shall not enter into a lease-purchase contract for8 7real or personal property which is to be constructed for use8 8as a prison or prison-related facility without prior8 9authorization by a constitutional majority of each house of8 10the general assembly and approval by the governor of the use,8 11location, and maximum cost, not including interest expense, of8 12the real or personal property to be lease-purchased and with8 13the construction in accordance with space needs as established8 14by an independent study of space needs authorized by the8 15general assembly.8 16e.A contract for acquisition, construction, erection, 8 17 demolition, alteration, or repair by a private person of real 8 18 or personal property to be lease-purchased by thedirector8 19 treasurer of state pursuant tothissection 12.28 is exempt 8 20 from section 18.6, subsections 1 and 9, unless the lease- 8 21 purchase contract is funded in advance by a deposit of the 8 22 lessor's moneys to be administered by thedirectortreasurer 8 23 of state under a lease-purchase contract which requires rent 8 24 payments to commence upon delivery of the lessor's moneys to 8 25 the lessee. 8 26This subsection provides an alternative and independent8 27method for carrying out projects under this chapter and for8 28entering into lease-purchase contracts in connection with the8 29projects, without reference to any other statute, and is not8 30an amendment of or subject to the provision of any other law.8 31No publication of any notice, whether under section 73A.12 or8 32otherwise, and no other or further proceedings with respect to8 33the lease-purchase contracts referred to in this section are8 34required except as set forth in this section, any provisions8 35of other statutes of the state to the contrary9 1notwithstanding.9 2ForUnless the context otherwise requires, for purposes of 9 3 this subsection and subsection 12, "state agency" means a 9 4 board, commission, bureau, division, office, department, or 9 5 branch of state government. 9 6 Sec. 4. REPEAL. Section 18.23, Code 1995, is repealed. 9 7 SF 2366 9 8 ec/cc/26
Text: SF02365 Text: SF02367 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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