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House File 191

Partial Bill History

Bill Text

PAG LIN
  1  1                                            HOUSE FILE 191
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO THE ESTABLISHMENT OF THE DRINKING WATER
  1  5    FACILITIES FINANCING PROGRAM, THE DRINKING WATER 
  1  6    TREATMENT REVOLVING LOAN FUND, THE DRINKING WATER
  1  7    FACILITIES ADMINISTRATION FUND, AND PROVIDING AN 
  1  8    EFFECTIVE DATE.
  1  9 
  1 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 11 
  1 12    Section 1.  Section 16.131, Code 1997, is amended to read
  1 13 as follows:
  1 14    16.131  IOWA SEWAGE TREATMENT WORKS AND DRINKING WATER
  1 15 FACILITIES FINANCING PROGRAM – DEFINITIONS – FUNDING –
  1 16 BONDS AND NOTES.
  1 17    1.  The authority shall cooperate with the department of
  1 18 natural resources in the creation, administration, and
  1 19 financing of the Iowa sewage treatment works and drinking
  1 20 water facilities financing program established in sections
  1 21 455B.291 through 455B.299.
  1 22    2.  Terms used in this part have the meanings given them in
  1 23 sections 455B.101 and 455B.291 unless the context requires
  1 24 otherwise.
  1 25    3.  The authority may issue its bonds and notes for the
  1 26 purpose of funding the revolving loan fund funds created under
  1 27 section 455B.295 and defraying the costs of payment of the
  1 28 twenty percent state matching funds required for federal funds
  1 29 received for projects.
  1 30    4.  The authority may issue its bonds and notes for the
  1 31 purposes established and may enter into one or more lending
  1 32 agreements or purchase agreements with one or more bondholders
  1 33 or noteholders containing the terms and conditions of the
  1 34 repayment of and the security for the bonds or notes.  The
  1 35 authority and the bondholders or noteholders or a trustee
  2  1 agent designated by the authority may enter into agreements to
  2  2 provide for any of the following:
  2  3    a.  That the proceeds of the bonds and notes and the
  2  4 investments of the proceeds may be received, held, and
  2  5 disbursed by the authority or by a trustee or agent designated
  2  6 by the authority.
  2  7    b.  That the bondholders or noteholders or a trustee or
  2  8 agent designated by the authority may collect, invest, and
  2  9 apply the amount payable under the loan agreements or any
  2 10 other instruments securing the debt obligations under the loan
  2 11 agreements.
  2 12    c.  That the bondholders or noteholders may enforce the
  2 13 remedies provided in the loan agreements or other instruments
  2 14 on their own behalf without the appointment or designation of
  2 15 a trustee.  If there is a default in the principal of or
  2 16 interest on the bonds or notes or in the performance of any
  2 17 agreement contained in the loan agreements or other
  2 18 instruments, the payment or performance may be enforced in
  2 19 accordance with the loan agreement or other instrument.
  2 20    d.  Other terms and conditions as deemed necessary or
  2 21 appropriate by the authority.
  2 22    5.  The powers granted the authority under this section are
  2 23 in addition to other powers contained in this chapter.  All
  2 24 other provisions of this chapter, except section 16.28,
  2 25 subsection 4, apply to bonds or notes issued and powers
  2 26 granted to the authority under this section except to the
  2 27 extent they are inconsistent with this section.
  2 28    6.  All bonds or notes issued by the authority in
  2 29 connection with the program are exempt from taxation by this
  2 30 state and the interest on the bonds or notes is exempt from
  2 31 state income tax.
  2 32    Sec. 2.  Section 16.132, subsection 1, paragraphs c and d,
  2 33 Code 1997, are amended to read as follows:
  2 34    c.  The amounts on deposit in the revolving loan fund
  2 35 funds.
  3  1    d.  The amounts payable to the department by municipalities
  3  2 or water systems pursuant to loan agreements with
  3  3 municipalities or water systems.
  3  4    Sec. 3.  Section 16.132, subsection 5, Code 1997, is
  3  5 amended to read as follows:
  3  6    5.  The bonds or notes issued by the authority are not an
  3  7 indebtedness or other liability of the state or of a political
  3  8 subdivision of the state within the meaning of any
  3  9 constitutional or statutory debt limitations but are special
  3 10 obligations of the authority, and are payable solely from the
  3 11 income and receipts or other funds or property of the
  3 12 department, and the amounts on deposit in the revolving loan
  3 13 fund funds, and the amounts payable to the department under
  3 14 its loan agreements with the municipalities and water systems
  3 15 to the extent that the amounts are designated in the
  3 16 resolution, trust agreement, or other instrument of the
  3 17 authority authorizing the issuance of the bonds or notes as
  3 18 being available as security for such bonds or notes.  The
  3 19 authority shall not pledge the faith or credit of the state or
  3 20 of a political subdivision of the state to the payment of any
  3 21 bonds or notes.  The issuance of any bonds or notes by the
  3 22 authority does not directly, indirectly, or contingently
  3 23 obligate the state or a political subdivision of the state to
  3 24 apply money from, or levy or pledge any form of taxation
  3 25 whatever to the payment of the bonds or notes.
  3 26    Sec. 4.  Section 16.132, subsection 6, Code 1997, is
  3 27 amended to read as follows:
  3 28    6.  The state pledges to and agrees with the holders of
  3 29 bonds or notes issued under the Iowa sewage treatment works
  3 30 and drinking water facilities financing program, that the
  3 31 state will not limit or alter the rights and powers vested in
  3 32 the authority to fulfill the terms of a contract made by the
  3 33 authority with respect to the bonds or notes, or in any way
  3 34 impair the rights and remedies of the holders until the bonds
  3 35 or notes, together with the interest on them including
  4  1 interest on unpaid installments of interest, and all costs and
  4  2 expenses in connection with an action or proceeding by or on
  4  3 behalf of the holders, are fully met and discharged.  The
  4  4 authority is authorized to include this pledge and agreement
  4  5 of the state, as it refers to holders of bonds or notes of the
  4  6 authority, in a contract with the holders.
  4  7    Sec. 5.  Section 455B.177, subsection 2, Code 1997, is
  4  8 amended to read as follows:
  4  9    2.  The general assembly further finds and declares that
  4 10 because the federal Safe Drinking Water Act, Pub. L. No. 93-
  4 11 523 42 U.S.C. } 300f et seq., as amended by Pub. L. No. 104-
  4 12 182, provides for the implementation of said the Act by states
  4 13 which have adequate authority to do so, it is in the interest
  4 14 of the people of Iowa to implement the provisions of the
  4 15 federal Safe Drinking Water Act and federal regulations and
  4 16 guidelines issued pursuant thereto to the Act.
  4 17    Sec. 6.  Section 455B.183, subsection 1, Code 1997, is
  4 18 amended to read as follows:
  4 19    1.  The construction, installation, or modification of any
  4 20 disposal system or public water supply system or part thereof
  4 21 or any extension or addition thereto except those sewer
  4 22 extensions and water supply distribution system extensions
  4 23 that are subject to review and approval by a city or county
  4 24 public works department pursuant to this section and private
  4 25 sewage disposal systems.  A Unless federal law or regulation
  4 26 requires the review and approval of plans and specifications,
  4 27 a permit shall be issued for the construction, installation,
  4 28 or modification of a public water supply system or part of a
  4 29 system if a qualified, registered engineer certifies to the
  4 30 department that the plans for the system or part of the system
  4 31 meet the requirements of state and federal law or regulations.
  4 32 The permit shall state that approval is based only upon the
  4 33 engineer's certification that the system's design meets the
  4 34 requirements of all applicable state and federal laws and
  4 35 regulations and the review of the department shall be
  5  1 advisory.
  5  2    Sec. 7.  Section 455B.291, Code 1997, is amended to read as
  5  3 follows:
  5  4    455B.291  DEFINITIONS.
  5  5    As used in this part, unless the context requires
  5  6 otherwise:
  5  7    1.  "Administrative funds" means the sewage treatment works
  5  8 administration fund and the drinking water facilities
  5  9 administration fund.
  5 10    2.  "Authority" means the Iowa finance authority
  5 11 established in section 16.2.
  5 12    2 3.  "Clean Water Act" means the federal Water Pollution
  5 13 Control Act of 1972, Pub. L. No. 92-500, as amended by the
  5 14 Water Quality Act of 1987, Pub. L. No. 100-4, as published in
  5 15 33 U.S.C. } 1251–1376.
  5 16    3 4.  "Cost" means all costs, charges, expenses, or other
  5 17 indebtedness incurred by a municipality or water system and
  5 18 determined by the director as reasonable and necessary for
  5 19 carrying out all works and undertakings necessary or
  5 20 incidental to the accomplishment of any project.
  5 21    5.  "Drinking water facilities administration fund" means
  5 22 the drinking water facilities administration fund established
  5 23 in section 455B.295.
  5 24    6.  "Drinking water treatment revolving loan fund" means
  5 25 the drinking water treatment revolving loan fund established
  5 26 in section 455B.295.
  5 27    4 7.  "Municipality" means a city, county, sanitary
  5 28 district, state agency, or other governmental body or
  5 29 corporation empowered to provide sewage collection and
  5 30 treatment services, or any combination of two or more of the
  5 31 governmental bodies or corporations acting jointly, in
  5 32 connection with a project.
  5 33    5 8.  "Program" means the Iowa sewage treatment works and
  5 34 drinking water facilities financing program created pursuant
  5 35 to section 455B.294.
  6  1    6 9.  "Project" means one of the following:
  6  2    a.  In the context of sewage treatment facilities, the
  6  3 acquisition, construction, reconstruction, extension,
  6  4 equipping, improvement, or rehabilitation of any works and
  6  5 facilities useful for the collection, treatment, and disposal
  6  6 of sewage and industrial waste in a sanitary manner including
  6  7 treatment works as defined in section 212 of the Clean Water
  6  8 Act, or the implementation and development of management
  6  9 programs established under sections 319 and 320 of the Clean
  6 10 Water Act.
  6 11    b.  In the context of drinking water facilities, the
  6 12 acquisition, construction, reconstruction, extending,
  6 13 remodeling, improving, repairing, or equipping of waterworks,
  6 14 water mains, extensions, or treatment facilities useful for
  6 15 providing potable water to residents served by a water system,
  6 16 including the acquisition of real property needed for any of
  6 17 the foregoing purposes, and such other programs as may be
  6 18 authorized under the Safe Drinking Water Act.
  6 19    10.  "Revolving loan funds" means the sewage treatment
  6 20 works revolving loan fund and the drinking water treatment
  6 21 revolving loan fund.
  6 22    11.  "Safe Drinking Water Act" means Title XIV of the
  6 23 federal Public Health Service Act, commonly known as the "Safe
  6 24 Drinking Water Act", 42 U.S.C. } 300f et seq., as amended by
  6 25 the Safe Drinking Water Amendments of 1996, Pub. L. No. 104-
  6 26 182.
  6 27    7 12.  "Sewage treatment works administration fund" or
  6 28 "administration fund" means the sewage treatment works
  6 29 administration fund established in section 455B.295.
  6 30    8 13.  "Sewage treatment works revolving loan fund" or
  6 31 "revolving loan fund" means the sewage treatment works
  6 32 revolving loan fund established in section 455B.295.
  6 33    14.  "Water system" means any community water system or
  6 34 nonprofit noncommunity water system, each as defined in the
  6 35 Safe Drinking Water Act, that is eligible under the rules of
  7  1 the department to receive a loan under the program for the
  7  2 purposes of undertaking a project.
  7  3    Sec. 8.  Section 455B.292, Code 1997, is amended to read as
  7  4 follows:
  7  5    455B.292  FINDINGS.
  7  6    The general assembly finds that the proper construction,
  7  7 rehabilitation, operation, and maintenance of modern and
  7  8 efficient sewer systems and wastewater treatment works and
  7  9 drinking water facilities are essential to protecting and
  7 10 improving the state's water quality and the health of its
  7 11 citizens; that protecting and improving water quality is an
  7 12 issue of concern to the citizens of the state; that in
  7 13 addition to protecting and improving the state's water
  7 14 quality, adequate wastewater treatment works and drinking
  7 15 water facilities are essential to economic growth and
  7 16 development; that during the last several years the amount of
  7 17 federal grant money available to states and local governments
  7 18 for assistance in constructing and improving wastewater
  7 19 treatment works and safe drinking water facilities has sharply
  7 20 diminished and will likely continue to diminish; and that it
  7 21 is proper for the state to encourage local governments to
  7 22 undertake wastewater treatment and drinking water projects
  7 23 through the establishment of a state mechanism to provide
  7 24 loans at the lowest reasonable rates.
  7 25    Sec. 9.  Section 455B.293, Code 1997, is amended to read as
  7 26 follows:
  7 27    455B.293  POLICY.
  7 28    It is the policy of the general assembly that it is in the
  7 29 public interest to establish a sewage treatment works and
  7 30 drinking water facilities financing program and a revolving
  7 31 loan fund funds and administration fund funds to make loans
  7 32 available from the state to municipalities to acquire,
  7 33 construct, reconstruct, extend, equip, and improve works and
  7 34 facilities useful for the collection, treatment, and disposal
  7 35 of sewage and industrial waste in a sanitary manner and water
  8  1 systems for the purpose of undertaking projects.  This section
  8  2 shall be broadly construed to effect and accomplish that
  8  3 purpose.
  8  4    Sec. 10.  Section 455B.294, Code 1997, is amended to read
  8  5 as follows:
  8  6    455B.294  ESTABLISHMENT OF THE IOWA SEWAGE TREATMENT WORKS
  8  7 AND DRINKING WATER FACILITIES FINANCING PROGRAM.
  8  8    The Iowa sewage treatment works and drinking water
  8  9 facilities financing program is established for the purpose of
  8 10 making loans available to municipalities and water systems to
  8 11 finance all or part of the costs of projects.  The program
  8 12 shall be a joint and cooperative undertaking of the department
  8 13 and the authority.  The department and the authority may enter
  8 14 into and provide any agreements, documents, instruments,
  8 15 certificates, data, or information necessary in connection
  8 16 with the operation, administration, and financing of the
  8 17 program consistent with this part, the Safe Drinking Water
  8 18 Act, the Clean Water Act, the rules of the department and the
  8 19 commission, the rules of the authority, and state law.  The
  8 20 authority and the department may act to conform the program to
  8 21 the applicable guidance and regulations adopted by the United
  8 22 States environmental protection agency.
  8 23    Sec. 11.  Section 455B.295, Code 1997, is amended to read
  8 24 as follows:
  8 25    455B.295  FUNDS AND ACCOUNTS.
  8 26    1.  Two Four separate funds are established in the state
  8 27 treasury, to be known as the "sewage treatment works revolving
  8 28 loan fund", and the "sewage treatment works administration
  8 29 fund", the drinking water treatment revolving loan fund, and
  8 30 the drinking water facilities administration fund.
  8 31    2.  The Each of the revolving loan fund funds shall include
  8 32 sums appropriated to the revolving loan fund funds by the
  8 33 general assembly, sums transferred by action of the governor
  8 34 under section 455B.296, subsection 3, sums allocated to the
  8 35 state expressly for the purposes of establishing a each of the
  9  1 revolving loan fund funds under the Clean Water Act and the
  9  2 Safe Drinking Water Act, all receipts by the revolving loan
  9  3 fund funds, and any other sums designated for deposit to the
  9  4 revolving loan fund funds from any public or private source.
  9  5 All moneys appropriated to and deposited in the revolving fund
  9  6 loan funds are appropriated and shall be used for the sole
  9  7 purpose of making loans to the municipalities and water
  9  8 systems, as applicable, to finance all or part of the cost of
  9  9 projects.  The moneys appropriated to and deposited in the
  9 10 sewage treatment works revolving loan fund shall not be used
  9 11 to pay the nonfederal share of the cost of projects receiving
  9 12 grants under the Clean Water Act.  The moneys in the revolving
  9 13 loan fund funds are not considered as a part of the general
  9 14 fund of the state, are not subject to appropriation for any
  9 15 other purpose by the general assembly, and in determining a
  9 16 general fund balance shall not be included in the general fund
  9 17 of the state but shall remain in the revolving loan fund funds
  9 18 to be used for its their respective purposes.  The revolving
  9 19 loan fund is a funds are separate dedicated fund funds under
  9 20 the administration and control of the authority and subject to
  9 21 section 16.31.  Moneys on deposit in the revolving loan fund
  9 22 funds shall be invested by the treasurer of state in
  9 23 cooperation with the authority, and the income from the
  9 24 investments shall be credited to and deposited in the
  9 25 appropriate revolving loan fund funds.
  9 26    3.  The sewage treatment works administration fund funds
  9 27 shall include sums appropriated to the administration fund
  9 28 funds by the general assembly, sums allocated to the state for
  9 29 the express purposes of administering the program programs,
  9 30 policies, and undertakings authorized by the Clean Water Act
  9 31 and the Safe Drinking Water Act, and all receipts by the
  9 32 administration fund funds from any public or private source.
  9 33 All moneys appropriated to and deposited in the administration
  9 34 fund funds are appropriated for and shall be used and
  9 35 administered by the department to pay the costs and expenses
 10  1 associated with the program, including administration of the
 10  2 program, as may be determined by the department.
 10  3    4.  The department and the authority may establish and
 10  4 maintain other funds or accounts determined to be necessary to
 10  5 carry out the purposes of this part and shall provide for the
 10  6 funding, administration, investment, restrictions, and
 10  7 disposition of the funds and accounts.  The department and the
 10  8 authority may combine the financial administration of the
 10  9 revolving loan funds and the administration of the revolving
 10 10 loan funds and the administration funds to the extent
 10 11 permitted by the Safe Drinking Water Act.
 10 12    Sec. 12.  Section 455B.296, Code 1997, is amended to read
 10 13 as follows:
 10 14    455B.296  INTENDED USE PLANS – CAPITALIZATION GRANTS –
 10 15 ACCOUNTING.
 10 16    1.  Each fiscal year beginning July 1, 1988, the department
 10 17 may prepare and deliver intended use plans and enter into
 10 18 capitalization grant agreements with the administrator of the
 10 19 United States environmental protection agency under the terms
 10 20 and conditions set forth in Title VI of the Clean Water Act
 10 21 and the Safe Drinking Water Act and federal regulations
 10 22 adopted pursuant to the Act Acts and may accept capitalization
 10 23 grants for each of the revolving loan fund funds in accordance
 10 24 with payment schedules established by the administrator.  All
 10 25 payments from the administrator shall be deposited in the
 10 26 appropriate revolving loan fund funds.
 10 27    2.  The department and the authority shall establish fiscal
 10 28 controls and accounting procedures during appropriate
 10 29 accounting periods for payments and disbursements received and
 10 30 made by the revolving loan fund funds, the administration fund
 10 31 funds, and other funds established pursuant to section
 10 32 455B.295, subsection 4, and to fund balances at the beginning
 10 33 and end of the accounting periods.
 10 34    3.  Upon receipt of the joint recommendation of the
 10 35 department and the authority with respect to the amounts to be
 11  1 so reserved and transferred, and subject in all respects to
 11  2 the applicable provisions of the Safe Drinking Water Act, the
 11  3 governor may direct that the recommended portion of a
 11  4 capitalization grant made in respect of one of the revolving
 11  5 loan funds in any year be reserved for the transfer to the
 11  6 other revolving loan fund.  The authority and the department
 11  7 may effect the transfer of any funds reserved for such
 11  8 purpose, as directed by the governor, and shall cause the
 11  9 records of the program to reflect the transfer.  Any sums so
 11 10 transferred shall be expended in accordance with the intended
 11 11 use plan for the applicable revolving loan fund.
 11 12    Sec. 13.  Section 455B.297, Code 1997, is amended to read
 11 13 as follows:
 11 14    455B.297  LOANS TO MUNICIPALITIES AND WATER SYSTEMS.
 11 15    Moneys deposited in the revolving loan fund funds shall be
 11 16 used for the sole primary purpose of making loans to
 11 17 municipalities and water systems to finance the cost of
 11 18 projects in accordance with the intended use plans developed
 11 19 by the department under section 455B.296.  The municipalities
 11 20 and water systems to which loans are to be made, the purposes
 11 21 of the loan, the amount of each loan, the interest rate of the
 11 22 loan, and the repayment terms of the loan, shall be determined
 11 23 by the director, in accordance with rules adopted by the
 11 24 commission, in compliance with and subject to the terms and
 11 25 conditions of Title VI of the Clean Water Act and the Safe
 11 26 Drinking Water Act, as applicable, and any resolution,
 11 27 agreement, indenture, or other document of the authority, and
 11 28 rules adopted by the authority, relating to any bonds, notes,
 11 29 or other obligations issued for the program which may be
 11 30 applicable to the loan.
 11 31    Sec. 14.  Section 455B.298, Code 1997, is amended to read
 11 32 as follows:
 11 33    455B.298  POWERS AND DUTIES OF THE DIRECTOR.
 11 34    The director shall:
 11 35    1.  Process and review loan applications to determine if an
 12  1 application meets the eligibility requirements set by the
 12  2 rules of the department.
 12  3    2.  Approve loan applications of municipalities and water
 12  4 systems which satisfy the rules adopted by the commission, and
 12  5 the intended use plan plans developed by the department under
 12  6 section 455B.296.
 12  7    3.  Process and review all documents relating to projects
 12  8 and the extending of loans.
 12  9    4.  Prepare and process, in coordination with the
 12 10 authority, documents relating to the extending of loans to
 12 11 municipalities and water systems, the sale and issuance of
 12 12 bonds, notes, or other obligations of the authority relating
 12 13 to the program, and the administration of the program.
 12 14    5.  Include in the budget prepared pursuant to section
 12 15 455A.4, subsection 1, paragraph "c", an annual budget for the
 12 16 administration of the program and the use and disposition of
 12 17 amounts on deposit in the administration fund funds.
 12 18    6.  Charge each municipality and water system receiving a
 12 19 loan from the appropriate revolving loan fund a loan
 12 20 origination fee and an annual loan servicing fee.  The amount
 12 21 of the loan origination fees and the loan servicing fees
 12 22 established shall be relative to the amount of a loan made
 12 23 from the revolving loan fund.  The director shall deposit the
 12 24 receipts from the loan origination fees and the loan servicing
 12 25 fees in the appropriate administration fund.
 12 26    7.  Consult with and receive the approval of the authority
 12 27 concerning the terms and conditions of loan agreements with
 12 28 municipalities and water systems as to the financial integrity
 12 29 of the loan.
 12 30    8.  Perform other acts and assume other duties and
 12 31 responsibilities necessary for the operation of the program.
 12 32    Sec. 15.  EFFECTIVE DATE.  This Act, being deemed of
 12 33 immediate importance, takes effect upon enactment.  
 12 34 
 12 35 
 13  1                                                             
 13  2                               RON J. CORBETT
 13  3                               Speaker of the House
 13  4 
 13  5 
 13  6                                                             
 13  7                               MARY E. KRAMER
 13  8                               President of the Senate
 13  9 
 13 10    I hereby certify that this bill originated in the House and
 13 11 is known as House File 191, Seventy-seventh General Assembly.
 13 12 
 13 13 
 13 14                                                             
 13 15                               ELIZABETH ISAACSON
 13 16                               Chief Clerk of the House
 13 17 Approved                , 1997
 13 18 
 13 19 
 13 20                         
 13 21 TERRY E. BRANSTAD
 13 22 Governor
     
Text: HF00190                           Text: HF00192
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