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PAG LIN
1 1 DIVISION I
1 2 SUBCHAPTER I
1 3 VISION IOWA BOARD
1 4 Section 1. NEW SECTION. 15F.101 DEFINITIONS.
1 5 As used in this chapter, unless the context otherwise
1 6 requires:
1 7 1. "Board" means the vision Iowa board as created in
1 8 section 15F.102.
1 9 2. "Department" means the Iowa department of economic
1 10 development created in section 15.105.
1 11 Sec. 2. NEW SECTION. 15F.102 VISION IOWA BOARD.
1 12 1. The vision Iowa board is established consisting of
1 13 thirteen members and is located for administrative purposes
1 14 within the department. The director of the department shall
1 15 provide office space, staff assistance, and necessary supplies
1 16 and equipment for the board. The director shall budget funds
1 17 to pay the compensation and expenses of the board. In
1 18 performing its functions the board is performing a public
1 19 function on behalf of the state and is a public
1 20 instrumentality of the state.
1 21 2. The membership of the board shall be appointed as
1 22 follows:
1 23 a. Three members of the general public, one member from
1 24 each of the three tourism regions.
1 25 b. One mayor of a city with a population of less than
1 26 twenty thousand.
1 27 c. One county supervisor from a county that has a
1 28 population ranking in the bottom thirty-three counties
1 29 according to the 1990 census.
1 30 d. Four members of the general public.
1 31 e. One mayor of a city with a population of twenty
1 32 thousand or more.
1 33 f. The director of the department of economic development.
1 34 g. The treasurer of state or the treasurer of state's
1 35 designee.
2 1 h. The auditor of state or the auditor of state's
2 2 designee.
2 3 3. All appointments, except the director of the department
2 4 of economic development, the treasurer of state, and the
2 5 auditor of state, shall be made by the governor, shall comply
2 6 with sections 69.16 and 69.16A, and shall be subject to
2 7 confirmation by the senate. All appointed members of the
2 8 board shall have demonstrable experience or expertise in the
2 9 field of tourism development and promotion, public financing,
2 10 architecture, engineering, or major facility development or
2 11 construction.
2 12 4. All members of the board, except the director of the
2 13 department of economic development, the treasurer of state,
2 14 and the auditor of state, shall be residents of different
2 15 counties.
2 16 5. The chairperson and vice chairperson of the board shall
2 17 be designated by the governor from the board members listed in
2 18 subsection 2, paragraphs "a" through "e". In case of the
2 19 absence or disability of the chairperson and vice chairperson,
2 20 the members of the board shall elect a temporary chairperson
2 21 by a majority vote of those members who are present and
2 22 voting.
2 23 6. The members, except the director of the department of
2 24 economic development, the treasurer of state, and the auditor
2 25 of state, shall be appointed to three-year staggered terms and
2 26 the terms shall commence and end as provided by section 69.19.
2 27 If a vacancy occurs, a successor shall be appointed to serve
2 28 the unexpired term. A successor shall be appointed in the
2 29 same manner and subject to the same qualifications as the
2 30 original appointment to serve the unexpired term.
2 31 7. A majority of the board constitutes a quorum.
2 32 Sec. 3. NEW SECTION. 15F.103 BOARD DUTIES.
2 33 The board shall do all of the following:
2 34 1. Organize.
2 35 2. Establish the vision Iowa program and the community
3 1 attraction and tourism program.
3 2 3. Oversee and provide approval of the administration of
3 3 the vision Iowa program and the community attraction and
3 4 tourism program by the department.
3 5 4. Request the treasurer of state to issue bonds on behalf
3 6 of the board for purposes of the vision Iowa program.
3 7 Sec. 4. NEW SECTION. 15F.103A DEPARTMENT DUTIES.
3 8 The department, subject to approval by the board, shall
3 9 adopt administrative rules pursuant to chapter 17A necessary
3 10 to administer the community attraction and tourism program and
3 11 the vision Iowa program. The department shall provide the
3 12 board with assistance in implementing administrative
3 13 functions, marketing the programs, providing technical
3 14 assistance and application assistance to applicants under the
3 15 programs, negotiating contracts, and providing project follow-
3 16 up. The department, in cooperation with the treasurer of
3 17 state, may conduct negotiations on behalf of the board with
3 18 applicants regarding terms and conditions applicable to awards
3 19 under the programs.
3 20 Sec. 5. NEW SECTION. 15F.104 COMPENSATION AND EXPENSES.
3 21 The members of the board are entitled to receive
3 22 reimbursement for actual expenses incurred while engaged in
3 23 the performance of official duties. A member of the board may
3 24 also be eligible to receive compensation as provided in
3 25 section 7E.6.
3 26 SUBCHAPTER II
3 27 COMMUNITY ATTRACTION AND TOURISM
3 28 PROGRAM AND FUND
3 29 Sec. 6. NEW SECTION. 15F.201 DEFINITIONS.
3 30 As used in this subchapter, unless the context otherwise
3 31 requires:
3 32 1. "Fund" means the community attraction and tourism fund
3 33 created in section 15F.204.
3 34 2. "Program" means the community attraction and tourism
3 35 program established in section 15F.202.
4 1 Sec. 7. NEW SECTION. 15F.202 COMMUNITY ATTRACTION AND
4 2 TOURISM PROGRAM.
4 3 1. The board shall establish and the department, subject
4 4 to direction and approval by the board, shall administer a
4 5 community attraction and tourism program to assist communities
4 6 in the development and creation of multiple-purpose attraction
4 7 and tourism facilities.
4 8 2. A city or county in the state or public organization
4 9 may submit an application to the board for financial
4 10 assistance for a project under the program. The assistance
4 11 shall be in the form of grants, loans, forgivable loans, and
4 12 loan guarantees. The application shall include, but not be
4 13 limited to, the following information:
4 14 a. The total capital investment of the project, including
4 15 but not limited to costs for construction, site acquisition,
4 16 and infrastructure improvement.
4 17 b. The amount or percentage of local and private matching
4 18 moneys which will be or have been provided for the project.
4 19 c. The total number of jobs to be created or retained by
4 20 the project.
4 21 d. The need of the community for the project and for the
4 22 financial assistance.
4 23 e. The long-term tax-generating impact of the project.
4 24 3. A school district, in cooperation with a city or
4 25 county, may submit a joint application for financial
4 26 assistance for a project under the program. The assistance
4 27 shall be in the form of grants, loans, forgivable loans, and
4 28 loan guarantees. In addition to the information required in
4 29 subsection 2, the application shall include a demonstration
4 30 that the intended future use of the project shall be by both
4 31 joint applicants.
4 32 Sec. 8. NEW SECTION. 15F.203 COMMUNITY ATTRACTION AND
4 33 TOURISM PROGRAM APPLICATION REVIEW.
4 34 1. Applications for assistance under the program shall be
4 35 submitted to the department. For those applications that meet
5 1 the eligibility criteria, the department shall provide a staff
5 2 review analysis and evaluation to the community attraction and
5 3 tourism program review committee referred to in subsection 2
5 4 and the board.
5 5 2. A review committee composed of five members of the
5 6 board shall review community attraction and tourism program
5 7 applications submitted to the board and make recommendations
5 8 regarding the applications to the board. The review committee
5 9 shall consist of members of the board listed in section
5 10 15F.102, subsection 2, paragraphs "a" through "c".
5 11 3. When reviewing the applications, the review committee
5 12 and the department shall consider, at a minimum, all of the
5 13 following:
5 14 a. Whether the wages, benefits, including health benefits,
5 15 safety, and other attributes of the project would improve the
5 16 quality of attraction and tourism employment in the community.
5 17 b. The extent to which such a project would generate
5 18 additional recreational and cultural attractions and tourism
5 19 opportunities.
5 20 c. The ability of the project to produce a long-term tax-
5 21 generating economic impact.
5 22 d. The location of the projects and geographic diversity
5 23 of the applications.
5 24 e. The project is primarily a vertical infrastructure
5 25 project with demonstrated substantial regional or statewide
5 26 economic impact. For purposes of the program, "vertical
5 27 infrastructure" means land acquisition and construction, major
5 28 renovation and major repair of buildings, all appurtenant
5 29 structures, utilities, site development, and recreational
5 30 trails. "Vertical infrastructure" does not include routine,
5 31 recurring maintenance or operational expenses or leasing of a
5 32 building, appurtenant structure, or utility without a lease-
5 33 purchase agreement.
5 34 f. Whether the applicant has received financial assistance
5 35 under the program for the same project.
6 1 4. Upon review of the recommendations of the review
6 2 committee, the board shall approve, defer, or deny the
6 3 applications.
6 4 5. Upon approval of an application for financial
6 5 assistance under the program, the board shall notify the
6 6 treasurer of state regarding the amount of moneys needed to
6 7 satisfy the award of financial assistance and the terms of the
6 8 award. The treasurer of state shall notify the department
6 9 anytime moneys are disbursed to a recipient of financial
6 10 assistance under the program.
6 11 Sec. 9. NEW SECTION. 15F.204 COMMUNITY ATTRACTION AND
6 12 TOURISM FUND.
6 13 1. A community attraction and tourism fund is created as a
6 14 separate fund in the state treasury under the control of the
6 15 board, consisting of any moneys appropriated by the general
6 16 assembly and any other moneys available to and obtained or
6 17 accepted by the board for placement in the fund.
6 18 2. Payments of interest, repayments of moneys loaned
6 19 pursuant to this subchapter, and recaptures of grants or loans
6 20 shall be deposited in the fund.
6 21 3. The fund shall be used to provide grants, loans,
6 22 forgivable loans, and loan guarantees under the community
6 23 attraction and tourism program established in section 15F.202.
6 24 An applicant under the community attraction and tourism
6 25 program shall not receive financial assistance from the fund
6 26 in an amount exceeding fifty percent of the total cost of the
6 27 project.
6 28 4. Moneys in the fund are not subject to section 8.33.
6 29 Notwithstanding section 12C.7, subsection 2, interest or
6 30 earnings on moneys in the fund shall be credited to the fund.
6 31 5. At the beginning of each fiscal year, the board shall
6 32 allocate all moneys in the fund in the following manner:
6 33 a. One-third of the moneys shall be allocated to provide
6 34 assistance to cities and counties which meet the following
6 35 criteria:
7 1 (1) A city which has a population of ten thousand or less
7 2 according to the most recently published census.
7 3 (2) A county which has a population that ranks in the
7 4 bottom thirty-three counties according to the most recently
7 5 published census.
7 6 b. Two-thirds of the moneys shall be allocated to provide
7 7 assistance to any city and county in the state, which may
7 8 include a city or county included under paragraph "a".
7 9 6. If two or more cities or counties submit a joint
7 10 project application for financial assistance under the
7 11 program, all joint applicants must meet the criteria of
7 12 subsection 5, paragraph "a", in order to receive any moneys
7 13 allocated under that paragraph.
7 14 7. If any portion of the allocated moneys under subsection
7 15 5, paragraph "a", has not been awarded by April 1 of the
7 16 fiscal year for which the allocation is made, the portion
7 17 which has not been awarded may be utilized by the board to
7 18 provide financial assistance under the program to any city or
7 19 county in the state.
7 20 SUBCHAPTER III
7 21 VISION IOWA PROGRAM
7 22 Sec. 10. NEW SECTION. 15F.301 DEFINITIONS.
7 23 As used in this subchapter, unless the context otherwise
7 24 requires:
7 25 1. "Fund" means the vision Iowa fund created in section
7 26 12.72.
7 27 2. "Program" means the vision Iowa program established in
7 28 section 15F.302.
7 29 Sec. 11. NEW SECTION. 15F.302 VISION IOWA PROGRAM.
7 30 1. The board shall establish and the department, subject
7 31 to direction and approval by the board, shall administer a
7 32 vision Iowa program to assist communities in the development
7 33 of major tourism facilities.
7 34 2. A city or county or a public organization in the state
7 35 may submit an application to the board for financial
8 1 assistance for a project under the program. For purposes of
8 2 this subsection, "public organization" means a nonprofit
8 3 economic development organization or other nonprofit
8 4 organization that sponsors or supports community or tourism
8 5 attractions and activities. The financial assistance from the
8 6 fund shall be in the form of grants, loans, forgivable loans,
8 7 pledges, and guarantees. The application shall include, but
8 8 not be limited to, the following information:
8 9 a. The total capital investment of the project, including
8 10 but not limited to costs for construction, site acquisition,
8 11 and infrastructure improvement.
8 12 b. A description of the proposed financing including the
8 13 amount or percentage of local and private matching moneys to
8 14 be provided for the project.
8 15 c. The total number of jobs to be created or retained by
8 16 the project.
8 17 d. The need of the community for the project and for
8 18 financial assistance.
8 19 e. The long-term tax-generating impact of the project.
8 20 f. A discussion of how the project meets other criteria
8 21 established in this subchapter.
8 22 g. The projected long-term economic viability of the
8 23 project, including projected revenues and expenses.
8 24 3. A school district, in cooperation with a city or
8 25 county, may submit a joint application for financial
8 26 assistance for a project under the program. The financial
8 27 assistance shall be in the form of grants, loans, forgivable
8 28 loans, and loan guarantees. In addition to the information
8 29 required in subsection 2, the application shall include a
8 30 demonstration that the intended future use of the project
8 31 shall be by both joint applicants.
8 32 Sec. 12. NEW SECTION. 15F.303 ELIGIBILITY.
8 33 1. The total cost for a project must be at least twenty
8 34 million dollars in order for an applicant to receive financial
8 35 assistance under the program.
9 1 2. An applicant must demonstrate financial and
9 2 nonfinancial support for the project which may be from a
9 3 public or private source. Nonfinancial support may include,
9 4 but is not limited to, the value of labor and services, real
9 5 and personal property donated for purposes of the project, and
9 6 the use of real and personal property for purposes of the
9 7 project. The financial and nonfinancial support for the
9 8 project described under this subsection shall equal at least
9 9 fifty percent of the total cost of the project.
9 10 3. In order for a project to be eligible to receive
9 11 financial assistance, the project must satisfy all of the
9 12 following criteria:
9 13 a. The project is primarily a vertical infrastructure
9 14 project with demonstrated substantial regional or statewide
9 15 economic impact. For purposes of the program, "vertical
9 16 infrastructure" means land acquisition and construction, major
9 17 renovation and major repair of buildings, all appurtenant
9 18 structures, utilities, site development, and recreational
9 19 trails. "Vertical infrastructure" does not include routine,
9 20 recurring maintenance or operational expenses or leasing of a
9 21 building, appurtenant structure, or utility without a lease-
9 22 purchase agreement.
9 23 b. The project supports or is strategically aligned with
9 24 other existing regional or statewide cultural, recreational,
9 25 entertainment, or educational activities.
9 26 c. The project provides benefits to persons living outside
9 27 the county in which the project is located.
9 28 d. The project will increase the diversity of activities
9 29 available to citizens, workers, families, and tourists, and
9 30 enhance recruitment and retention of young people as
9 31 residents.
9 32 e. The project has economic or other obstacles impeding
9 33 local financing of the project.
9 34 f. The project shall attract visitors from outside the
9 35 state.
10 1 4. The board shall not approve an application for
10 2 assistance for any of the following purposes:
10 3 a. To refinance a loan existing prior to the initial
10 4 application date.
10 5 b. For a project that has previously received assistance
10 6 under the program, unless the applicant demonstrates that the
10 7 assistance would be used for a significant expansion of a
10 8 project.
10 9 Sec. 13. NEW SECTION. 15F.304 VISION IOWA PROGRAM
10 10 APPLICATION REVIEW.
10 11 1. Applications for assistance under the program shall be
10 12 submitted to the department. For those applications that meet
10 13 the eligibility criteria, the department shall provide a staff
10 14 review and evaluation to the vision Iowa program review
10 15 committee referred to in subsection 2 and the board.
10 16 2. A review committee composed of eight members of the
10 17 board shall review vision Iowa program applications submitted
10 18 to the board and make recommendations regarding the
10 19 applications to the board. The review committee shall consist
10 20 of members of the board listed in section 15F.102, subsection
10 21 2, paragraphs "d" through "h".
10 22 3. When reviewing the applications, the review committee
10 23 and the department shall consider, in addition to other
10 24 criteria established in this subchapter, all of the following:
10 25 a. Whether wages, benefits, including health benefits,
10 26 safety, and other attributes of the project would improve the
10 27 quality of other existing regional or statewide cultural,
10 28 recreational, entertainment, and educational activities or
10 29 employment in the community.
10 30 b. The extent to which the project would generate
10 31 additional attraction and tourism opportunities.
10 32 c. The ability of the project to produce a long-term tax-
10 33 generating economic impact in excess of the proposed financial
10 34 assistance from the vision Iowa fund.
10 35 d. The geographic diversity of the project in combination
11 1 with other proposed projects.
11 2 e. The investment of the city, county, or region in the
11 3 overall project.
11 4 f. Other funding mechanisms.
11 5 g. The long-term economic viability of the project.
11 6 4. Upon review of the recommendations of the review
11 7 committee, the board shall approve, defer, or deny the
11 8 applications.
11 9 DIVISION II
11 10 Sec. 14. NEW SECTION. 12.71 GENERAL AND SPECIFIC BONDING
11 11 POWERS – VISION IOWA PROGRAM.
11 12 1. The treasurer of state may issue bonds upon the request
11 13 of the vision Iowa board created in section 15F.102 and do all
11 14 things necessary with respect to the purposes of the vision
11 15 Iowa fund. The treasurer of state shall have all of the
11 16 powers which are necessary to issue and secure bonds and carry
11 17 out the purposes of the fund. The treasurer of state may
11 18 issue bonds in principal amounts which, in the opinion of the
11 19 board, are necessary to provide sufficient funds for the
11 20 vision Iowa fund created in section 12.72, the payment of
11 21 interest on the bonds, the establishment of reserves to secure
11 22 the bonds, the costs of issuance of the bonds, other
11 23 expenditures of the treasurer of state incident to and
11 24 necessary or convenient to carry out the bond issue for the
11 25 fund, and all other expenditures of the board necessary or
11 26 convenient to administer the fund; provided, however,
11 27 excluding the issuance of refunding bonds, bonds issued
11 28 pursuant to section 12.71 shall not be issued in an aggregate
11 29 principal amount which exceeds three hundred million dollars.
11 30 The bonds are investment securities and negotiable instruments
11 31 within the meaning of and for purposes of the uniform
11 32 commercial code.
11 33 2. Bonds issued under this section are payable solely and
11 34 only out of the moneys, assets, or revenues of the vision Iowa
11 35 fund and any bond reserve funds established pursuant to
12 1 section 12.72, all of which may be deposited with trustees or
12 2 depositories in accordance with bond or security documents and
12 3 pledged by the board to the payment thereof. Bonds issued
12 4 under this section shall contain on their face a statement
12 5 that the bonds do not constitute an indebtedness of the state.
12 6 The treasurer of state shall not pledge the credit or taxing
12 7 power of this state or any political subdivision of this state
12 8 or make bonds issued pursuant to this section payable out of
12 9 any moneys except those in the vision Iowa fund.
12 10 3. The proceeds of bonds issued by the treasurer of state
12 11 and not required for immediate disbursement may be deposited
12 12 with a trustee or depository as provided in the bond documents
12 13 and invested or reinvested in any investment as directed by
12 14 the board and specified in the trust indenture, resolution, or
12 15 other instrument pursuant to which the bonds are issued
12 16 without regard to any limitation otherwise provided by law.
12 17 4. The bonds shall be:
12 18 a. In a form, issued in denominations, executed in a
12 19 manner, and payable over terms and with rights of redemption,
12 20 and be subject to such other terms and conditions as
12 21 prescribed in the trust indenture, resolution, or other
12 22 instrument authorizing their issuance.
12 23 b. Negotiable instruments under the laws of the state and
12 24 may be sold at prices, at public or private sale, and in a
12 25 manner, as prescribed by the treasurer of state. Chapters
12 26 73A, 74, 74A, and 75 do not apply to the sale or issuance of
12 27 the bonds.
12 28 c. Subject to the terms, conditions, and covenants
12 29 providing for the payment of the principal, redemption
12 30 premiums, if any, interest, and other terms, conditions,
12 31 covenants, and protective provisions safeguarding payment, not
12 32 inconsistent with this section and as determined by the trust
12 33 indenture, resolution, or other instrument authorizing their
12 34 issuance.
12 35 5. The bonds are securities in which public officers and
13 1 bodies of this state; political subdivisions of this state;
13 2 insurance companies and associations and other persons
13 3 carrying on an insurance business; banks, trust companies,
13 4 savings associations, savings and loan associations, and
13 5 investment companies; administrators, guardians, executors,
13 6 trustees, and other fiduciaries; and other persons authorized
13 7 to invest in bonds or other obligations of the state, may
13 8 properly and legally invest funds, including capital, in their
13 9 control or belonging to them.
13 10 6. Bonds must be authorized by a trust indenture,
13 11 resolution, or other instrument of the treasurer of state
13 12 approved by the board. However, a trust indenture,
13 13 resolution, or other instrument authorizing the issuance of
13 14 bonds may delegate to an officer of the board the power to
13 15 negotiate and fix the details of an issue of bonds.
13 16 7. Neither the resolution, trust agreement, nor any other
13 17 instrument by which a pledge is created needs to be recorded
13 18 or filed under the Iowa uniform commercial code to be valid,
13 19 binding, or effective.
13 20 8. Bonds issued under the provisions of this section are
13 21 declared to be issued for a general public and governmental
13 22 purpose and all bonds issued under this section shall be
13 23 exempt from taxation by the state of Iowa and the interest on
13 24 the bonds shall be exempt from the state income tax and the
13 25 state inheritance and estate tax.
13 26 9. Subject to the terms of any bond documents, moneys in
13 27 the vision Iowa fund may be expended for administration
13 28 expenses.
13 29 10. The treasurer of state may issue bonds for the purpose
13 30 of refunding any bonds or notes issued pursuant to this
13 31 section then outstanding, including the payment of any
13 32 redemption premiums thereon and any interest accrued or to
13 33 accrue to the date of redemption of the outstanding bonds or
13 34 notes. Until the proceeds of bonds issued for the purpose of
13 35 refunding outstanding bonds or notes are applied to the
14 1 purchase or retirement of outstanding bonds or notes or the
14 2 redemption of outstanding bonds or notes, the proceeds may be
14 3 placed in escrow and be invested and reinvested in accordance
14 4 with the provisions of this section. The interest, income,
14 5 and profits earned or realized on an investment may also be
14 6 applied to the payment of the outstanding bonds or notes to be
14 7 refunded by purchase, retirement, or redemption. After the
14 8 terms of the escrow have been fully satisfied and carried out,
14 9 any balance of proceeds and interest earned or realized on the
14 10 investments may be returned to the board for deposit in the
14 11 vision Iowa fund established in section 12.72. All refunding
14 12 bonds shall be issued and secured and subject to the
14 13 provisions of this chapter in the same manner and to the same
14 14 extent as other bonds issued pursuant to this section.
14 15 Sec. 15. NEW SECTION. 12.72 VISION IOWA AND RESERVE
14 16 FUNDS.
14 17 1. A vision Iowa fund is created and established as a
14 18 separate and distinct fund in the state treasury. The moneys
14 19 in the fund are appropriated to the board for purposes of the
14 20 vision Iowa program established in section 15F.302. Moneys in
14 21 the fund shall not be subject to appropriation for any other
14 22 purpose by the general assembly, but shall be used only for
14 23 the purposes of the vision Iowa fund. The treasurer of state
14 24 shall act as custodian of the fund and disburse moneys
14 25 contained in the fund as directed by the board, including
14 26 automatic disbursements of funds received pursuant to the
14 27 terms of bond indentures and documents and security provisions
14 28 to trustees. The fund shall be administered by the board
14 29 which shall make expenditures from the fund consistent with
14 30 the purposes of the vision Iowa program without further
14 31 appropriation. An applicant under the vision Iowa program
14 32 shall not receive more than seventy-five million dollars in
14 33 financial assistance from the fund.
14 34 2. Revenue for the vision Iowa fund shall include, but is
14 35 not limited to, the following, which shall be deposited with
15 1 the treasurer of state or its designee as provided by any bond
15 2 or security documents and credited to the fund:
15 3 a. The proceeds of bonds issued to capitalize and pay the
15 4 costs of the fund and investment earnings on the proceeds.
15 5 b. Interest attributable to investment of money in the
15 6 fund or an account of the fund.
15 7 c. Moneys in the form of a devise, gift, bequest,
15 8 donation, federal or other grant, reimbursement, repayment,
15 9 judgment, transfer, payment, or appropriation from any source
15 10 intended to be used for the purposes of the fund.
15 11 3. Moneys in the vision Iowa fund are not subject to
15 12 section 8.33. Notwithstanding section 12C.7, subsection 2,
15 13 interest or earnings on moneys in the fund shall be credited
15 14 to the fund.
15 15 4. The treasurer of state may establish reserve funds to
15 16 secure one or more issues of bonds or notes issued pursuant to
15 17 section 12.71. The treasurer of state may deposit in a
15 18 reserve fund established under this subsection the proceeds of
15 19 the sale of bonds or notes and other money which is made
15 20 available from any other source. The treasurer of state may
15 21 allow a reserve fund established under this subsection to be
15 22 depleted.
15 23 Sec. 16. NEW SECTION. 12.73 PLEDGES.
15 24 1. It is the intention of the general assembly that a
15 25 pledge made in respect of bonds or notes shall be valid and
15 26 binding from the time the pledge is made, that the money or
15 27 property so pledged and received after the pledge by the
15 28 authority shall immediately be subject to the lien of the
15 29 pledge without physical delivery or further act, and that the
15 30 lien of the pledge shall be valid and binding as against all
15 31 parties having claims of any kind in tort, contract, or
15 32 otherwise against the treasurer of state whether or not the
15 33 parties have notice of the lien.
15 34 2. The state pledges to and agrees with the holders of
15 35 bonds or notes issued under section 12.71, that the state will
16 1 not limit or alter the rights and powers vested in the board
16 2 or the treasurer of state to fulfill the terms of a contract
16 3 made with respect to the bonds or notes, or in any way impair
16 4 the rights and remedies of the holders until the bonds and
16 5 notes, together with the interest on them including interest
16 6 on unpaid installments of interest, are fully met and
16 7 discharged.
16 8 Sec. 17. NEW SECTION. 12.74 PROJECTS.
16 9 1. The vision Iowa board may undertake a project for two
16 10 or more applicants jointly or for any combination of
16 11 applicants, and may combine for financing purposes, with the
16 12 consent of all of the applicants which are involved, the
16 13 project and some or all future projects of any applicant, and
16 14 sections 12.71, 12.72, and 12.73, this section, and sections
16 15 12.75 and 12.76 apply to and for the benefit of the vision
16 16 Iowa board and the joint applicants. However, the money set
16 17 aside in a fund or funds pledged for any series or issue of
16 18 bonds or notes shall be held for the sole benefit of the
16 19 series or issue separate and apart from money pledged for
16 20 another series or issue of bonds or notes of the treasurer of
16 21 state. To facilitate the combining of projects, bonds or
16 22 notes may be issued in series under one or more resolutions or
16 23 trust agreements and may be fully open-ended, thus providing
16 24 for the unlimited issuance of additional series, or partially
16 25 open-ended, limited as to additional series.
16 26 2. For purposes of this section, "applicant" means a city
16 27 or county or public organization applying for financial
16 28 assistance under the vision Iowa program established in
16 29 section 15F.302.
16 30 Sec. 18. NEW SECTION. 12.75 LIMITATIONS.
16 31 Bonds or notes issued pursuant to section 12.71 are not
16 32 debts of the state, or of any political subdivision of the
16 33 state and do not constitute a pledge of the faith and credit
16 34 of the state or a charge against the general credit or general
16 35 fund of the state. The issuance of any bonds or notes
17 1 pursuant to section 12.71 by the treasurer of state does not
17 2 directly, indirectly, or contingently obligate the state or a
17 3 political subdivision of the state to apply moneys from, or to
17 4 levy or pledge any form of taxation whatever, to the payment
17 5 of the bonds or notes. Bonds and notes issued under section
17 6 12.71 are payable solely and only from the sources and special
17 7 fund provided in section 12.72.
17 8 Sec. 19. NEW SECTION. 12.76 CONSTRUCTION.
17 9 Sections 12.71 through 12.75, being necessary for the
17 10 welfare of this state and its inhabitants, shall be liberally
17 11 construed to effect its purposes.
17 12 DIVISION III
17 13 Sec. 20. NEW SECTION. 292.1 DEFINITIONS.
17 14 As used in this chapter, unless the context otherwise
17 15 requires:
17 16 1. "Capacity per pupil" means the sum of a school
17 17 district's property tax infrastructure capacity per pupil and
17 18 the sales tax capacity per pupil.
17 19 2. "Committee" means the school budget review committee
17 20 established in section 257.30.
17 21 3. "Department" means the department of education
17 22 established in section 256.1.
17 23 4. "Fund" means the school infrastructure fund created in
17 24 section 292.3.
17 25 5. "Local match percentage" means a percentage equivalent
17 26 to either of the following, whichever is less:
17 27 a. Fifty percent.
17 28 b. The quotient of a school district's capacity per pupil
17 29 divided by the capacity per pupil of the school district at
17 30 the fortieth percentile, multiplied by fifty, except that the
17 31 percentage in this paragraph shall not be less than twenty
17 32 percent.
17 33 6. "Program" means the school infrastructure program
17 34 established in section 292.2.
17 35 7. "Property tax infrastructure capacity per pupil" means
18 1 the sum of a school district's levies under sections 298.2 and
18 2 298.18 when the levies are imposed to the maximum extent
18 3 allowable under law in the budget year divided by the school
18 4 district's basic enrollment for the budget year.
18 5 8. "Sales tax capacity per pupil" means the estimated
18 6 amount of revenues that a school district receives or would
18 7 receive if a local sales and services tax for school
18 8 infrastructure is imposed at one percent pursuant to section
18 9 422E.2, divided by the school district's basic enrollment for
18 10 the budget year. For the budget year beginning July 1, 2000,
18 11 the school district's actual enrollment shall be used in the
18 12 calculation in place of the school district's basic enrollment
18 13 for the budget year.
18 14 9. "School infrastructure" means activities initiated on
18 15 or after July 1, 2000, as authorized in section 296.1 but does
18 16 not include those activities related to stadiums, bus barns, a
18 17 home or homes of a teacher or superintendent, procuring and
18 18 improving a site for an athletic field, or improving a site
18 19 already owned for an athletic field.
18 20 Sec. 21. NEW SECTION. 292.2 SCHOOL INFRASTRUCTURE
18 21 PROGRAM.
18 22 1. a. The department shall establish and administer a
18 23 school infrastructure program to provide financial assistance
18 24 in the form of grants to school districts with school
18 25 infrastructure needs.
18 26 b. The department of education, in consultation with the
18 27 department of management, shall annually compute the property
18 28 tax infrastructure capacity per pupil for each school district
18 29 in the state.
18 30 c. The department of education, in consultation with the
18 31 department of revenue and finance and the legislative fiscal
18 32 bureau, shall annually calculate the estimated sales and
18 33 services tax for school infrastructure, if imposed at one
18 34 percent, that is or would be received by each school district
18 35 in the state pursuant to section 422E.3. These calculations
19 1 shall be made on a total tax and on a tax per pupil basis for
19 2 each school district.
19 3 d. The department of education, in consultation with the
19 4 department of revenue and finance and the department of
19 5 management, shall annually compute capacity per pupil and the
19 6 local match percentage for each school district in the state.
19 7 The initial calculations shall be released not later than
19 8 January 1, 2001. For all calculations thereafter, the
19 9 calculations shall be released not later than July 1 of each
19 10 year.
19 11 2. a. A school district's local match requirement is
19 12 equivalent to the total investment of a project multiplied by
19 13 the school district's local match percentage. A school
19 14 district may submit an application to the department for
19 15 financial assistance under the program if the school district
19 16 meets the district's local match requirement through one or
19 17 more of the following sources:
19 18 (1) The issuance of bonds pursuant to section 298.18.
19 19 (2) Local sales and services tax moneys received pursuant
19 20 to section 422E.3.
19 21 (3) A physical plant and equipment levy under chapter 298.
19 22 (4) Other moneys locally obtained by the school district
19 23 excluding other state or federal grant moneys.
19 24 b. If the project is in collaboration with other public or
19 25 private entities, the school district shall be eligible to
19 26 apply for only the school district's portion of the project.
19 27 As such, state or federal grants received by the other
19 28 entities cannot be used toward the local match requirement
19 29 under paragraph "a", subparagraph (4).
19 30 c. A school district may submit an application for a
19 31 project which includes activities at more than one attendance
19 32 center. However, if the activities relate to new
19 33 construction, the project shall only relate to one attendance
19 34 center.
19 35 d. A school district may submit an application for
20 1 conditional approval to the department for financial
20 2 assistance under the program if the school district submits a
20 3 plan for securing the school district's local match
20 4 requirement under paragraph "a". If a school district does
20 5 not meet the local match requirement of paragraph "a" within
20 6 nine months of receiving conditional approval from the
20 7 department, the application for financial assistance shall be
20 8 denied by the department and the financial assistance shall be
20 9 carried forward to be made available under the allocation
20 10 provided under subsection 4, paragraph "d", for the next
20 11 available grant cycle.
20 12 e. For the fiscal year beginning July 1, 2000,
20 13 applications shall be submitted to the department by March 1,
20 14 2001. For the fiscal year beginning July 1, 2001, and every
20 15 fiscal year thereafter, applications shall be submitted to the
20 16 department by October 15 of each year.
20 17 f. For the fiscal year beginning July 1, 2000, the
20 18 department shall notify all approved applicants by May 1,
20 19 2001, regarding the approval of the application. For the
20 20 fiscal year beginning July 1, 2001, and every fiscal year
20 21 thereafter, the department shall notify all approved
20 22 applicants by December 15 of each year regarding the approval
20 23 of the application.
20 24 g. An applicant which is not successful in obtaining
20 25 financial assistance under the program may reapply for
20 26 financial assistance in succeeding years.
20 27 3. The application shall include, but shall not be limited
20 28 to, the following information:
20 29 a. The total capital investment of the project.
20 30 b. The amount and percentage of moneys which the school
20 31 district will be providing for the project.
20 32 c. The infrastructure needs of the school district,
20 33 especially the fire and health safety needs of the school
20 34 district, and including the extent to which the project would
20 35 allow the school district to meet the infrastructure needs of
21 1 the school district on a long-term basis.
21 2 d. The financial assistance needed by the school district
21 3 based upon the capacity per pupil.
21 4 e. Any previous efforts by the school district to secure
21 5 infrastructure funding from federal, state, or local
21 6 resources, including any funding received for any project
21 7 under the Iowa demonstration construction grant program. The
21 8 previous efforts shall be evaluated on a case-by-case basis.
21 9 f. Evidence that the school district meets or will meet
21 10 the local match requirement in subsection 2, paragraph "a".
21 11 g. The nature of the proposed project and its relationship
21 12 to improving educational opportunities for the students.
21 13 h. Evidence that the school district has reorganized on or
21 14 after July 1, 2000, or that the school district has initiated
21 15 a resolution to reorganize by July 1, 2004, or entered into an
21 16 innovative collaboration with another school district or
21 17 school districts.
21 18 i. Evidence that the school district receives sales and
21 19 services tax for school infrastructure funding under section
21 20 422E.3.
21 21 4. A school district shall not receive more than one grant
21 22 under the program. The financial assistance shall be in the
21 23 form of grants and shall be allocated in the following manner:
21 24 a. Twenty-five percent of the financial assistance each
21 25 year shall be awarded to school districts with an enrollment
21 26 of one thousand one hundred ninety-nine students or less.
21 27 b. Twenty-five percent of the financial assistance each
21 28 year shall be awarded to school districts with an enrollment
21 29 of more than one thousand one hundred ninety-nine students but
21 30 not more than four thousand seven hundred fifty students.
21 31 c. Twenty-five percent of the financial assistance each
21 32 year shall be awarded to school districts with an enrollment
21 33 of more than four thousand seven hundred fifty students.
21 34 d. Twenty-five percent of the financial assistance each
21 35 year, any financial assistance not awarded under paragraphs
22 1 "a" through "c", and financial assistance not awarded in
22 2 previous fiscal years shall be awarded to school districts
22 3 with any size enrollment.
22 4 5. A district shall receive the lesser of one million
22 5 dollars of financial assistance under the program, or the
22 6 total capital investment of the project minus the local match
22 7 requirement. The program shall provide grants each year for a
22 8 period of five years.
22 9 6. The school budget review committee shall review all
22 10 applications for financial assistance under the program and
22 11 make recommendations regarding the applications to the
22 12 department. The department shall make the final determination
22 13 on grant awards. The school budget review committee shall
22 14 base the recommendations on the criteria established pursuant
22 15 to subsections 3 and 7.
22 16 7. The department shall form a task force to review
22 17 applications for financial assistance and provide
22 18 recommendations to the school budget review committee. The
22 19 task force shall include, at a minimum, representatives from
22 20 the kindergarten through grade twelve education community, the
22 21 state fire marshal, and individuals knowledgeable in school
22 22 infrastructure and construction issues. The department, in
22 23 consultation with the task force, shall establish the
22 24 parameters and the details of the criteria for awarding grants
22 25 based on the information listed in subsection 3, including
22 26 greater priority to the following:
22 27 a. A school district with a lower capacity per pupil.
22 28 b. A school district whose plans address specific occupant
22 29 safety issues.
22 30 c. A school district reorganizing or collaborating as
22 31 described in subsection 3, paragraph "h".
22 32 d. A school district for which a sales and services tax
22 33 for school infrastructure has not been imposed pursuant to
22 34 section 422E.2 or a school district receiving minimal revenues
22 35 under section 422E.3 when the total enrollment of the school
23 1 district is considered.
23 2 8. An applicant receiving financial assistance under the
23 3 program shall submit a progress report to the department of
23 4 education as requested by the department which shall include a
23 5 description of the activities under the project, the status of
23 6 the implementation of the project, and any other information
23 7 required by the department.
23 8 Sec. 22. NEW SECTION. 292.3 SCHOOL INFRASTRUCTURE FUND.
23 9 1. A school infrastructure fund is created in the state
23 10 treasury under the control of the department consisting of
23 11 moneys appropriated by the general assembly and any other
23 12 moneys available to and obtained by the department for
23 13 placement in the fund.
23 14 2. The fund shall be used to provide financial assistance
23 15 in the form of grants under the school infrastructure program.
23 16 3. Moneys in the fund are not subject to section 8.33.
23 17 Sec. 23. NEW SECTION. 292.4 RULES.
23 18 The department shall adopt rules, pursuant to chapter 17A,
23 19 necessary for administering the school infrastructure program
23 20 and fund.
23 21 Sec. 24. Section 384.95, subsection 1, Code 1999, is
23 22 amended to read as follows:
23 23 1. "Public improvement" means any building or construction
23 24 work, either within or outside the corporate limits of a city,
23 25 to be paid for in whole or in part by the use of funds of the
23 26 city, regardless of sources, including a building or
23 27 improvement constructed or operated jointly with any other
23 28 public or private agency, but excluding urban renewal
23 29 demolition and low-rent housing projects, industrial aid
23 30 projects authorized under chapter 419, emergency work or work
23 31 performed by employees of a city or a city utility.
23 32 Sec. 25. Sections 15.371 through 15.373, Code Supplement
23 33 1999, are repealed.
23 34 Sec. 26. REPEAL AND REENACTMENT – CONTINUATION. The
23 35 repeal and reenactment of Code sections relating to the
24 1 community attraction and tourism development program and the
24 2 community attraction and tourism development fund are intended
24 3 to be a continuation of the prior statutes and not a new
24 4 enactment, so far as the new enactment is the same as the
24 5 prior statutes. The repeal and reenactment of Code sections
24 6 relating to the community attraction and tourism development
24 7 program and the community attraction and tourism development
24 8 fund shall not cause moneys in the current community
24 9 attraction and tourism development fund to revert to any other
24 10 fund but such moneys shall remain in the community attraction
24 11 and tourism fund established in Code section 15F.204 for
24 12 expenditure for subsequent fiscal years. The repeal and
24 13 reenactment of Code sections relating to the community
24 14 attraction and tourism development program and the community
24 15 attraction and tourism development fund shall not nullify any
24 16 awards made under the program based on appropriations made in
24 17 1999 Iowa Acts, chapter 204, section 3, subsection 2, for the
24 18 fiscal years beginning July 1, 1999, and July 1, 2000.
24 19 Sec. 27. This Act prevails over the provisions of 2000
24 20 Iowa Acts, House File 2392, if enacted, relating to any
24 21 amendments to the community attraction and tourism development
24 22 program and fund, which provisions are void.
24 23 EXPLANATION
24 24 This bill creates a vision Iowa board to establish a
24 25 community attraction and tourism program and a vision Iowa
24 26 program. The bill provides that the department of economic
24 27 development shall administer both programs subject to approval
24 28 by the board. The bill provides that the board consists of 13
24 29 members, with most members appointed for three-year staggered
24 30 terms. The bill provides that the board shall be located
24 31 within the department of economic development for
24 32 administrative purposes. The bill provides for the
24 33 compensation and reimbursement of expenses of board members.
24 34 The bill provides for the repeal of sections in the Code
24 35 relating to the community attraction and tourism development
25 1 program and fund, moves these sections to new Code chapter
25 2 15F, and changes the name to the community attraction and
25 3 tourism program and fund. The program is designed to assist
25 4 communities in the development and creation of multiple-
25 5 purpose attraction and tourism facilities. The bill amends
25 6 these sections by allowing a school district to submit a joint
25 7 application for financial assistance with a city or county.
25 8 The bill amends these sections by providing that an applicant
25 9 shall not receive financial assistance in an amount exceeding
25 10 50 percent of the total cost of a project. The bill amends
25 11 these sections by providing for a review committee consisting
25 12 of certain members of the board to review the applications for
25 13 assistance and make recommendations to the board. The bill
25 14 provides that the department shall provide a staff review
25 15 analysis and evaluation of the program applications to the
25 16 review committee and the board. The bill provides that upon
25 17 review of the recommendations of the review committee, the
25 18 board shall approve, defer, or deny the applications. The
25 19 bill also amends these sections by providing for the
25 20 allocation of one-third of the moneys in the fund to provide
25 21 assistance to cities with a population of 10,000 or less
25 22 according to the most recently published census and to
25 23 counties with a population that ranks in the bottom 33
25 24 counties according to the most recently published census. The
25 25 bill provides that any allocated moneys which are not awarded
25 26 by April 1 of each fiscal year may be utilized to provide
25 27 assistance to any city or county in the state.
25 28 The bill provides for the establishment of the vision Iowa
25 29 program. The bill provides that the program is designed to
25 30 assist communities in the development of major tourism
25 31 facilities. The bill provides a review committee consisting
25 32 of certain members of the board to review the applications for
25 33 assistance and make recommendations to the board. The bill
25 34 provides that the department shall provide a staff review and
25 35 evaluation of the program applications to the review committee
26 1 and the board. The bill provides that upon review of the
26 2 recommendations of the review committee, the board shall
26 3 approve, defer, or deny the applications. The bill provides
26 4 that the total cost of a project must be at least $20 million
26 5 in order for an applicant to receive assistance. The bill
26 6 provides that financial and nonfinancial support for the
26 7 project, which may be from a public or private source, must be
26 8 demonstrated by the applicant and such support must be at
26 9 least 50 percent of the total cost of the project. The bill
26 10 provides that assistance under the program shall not be used
26 11 to refinance a loan or debt and a project shall not receive
26 12 more than one award under the program unless the applicant
26 13 demonstrates that the assistance would be used for a
26 14 significant expansion of the project.
26 15 The bill provides the treasurer of state with powers
26 16 relating to issuance of bonds and the deposit or disbursement
26 17 of bond proceeds. The bill provides that the bonds are
26 18 payable solely and only out of the moneys, assets, or revenues
26 19 of the vision Iowa fund and any bond reserve funds. The bill
26 20 provides for the form the bonds shall take. The bill provides
26 21 for persons authorized to invest in the bonds, the manner in
26 22 which the bonds shall be authorized, and that the
26 23 authorization does not need to be recorded to be valid and
26 24 binding. The bill provides that the interest on the bonds
26 25 shall be exempt from the state income tax and the state
26 26 inheritance and estate tax. The bill allows the moneys in the
26 27 vision Iowa fund to be used for administrative purposes and
26 28 allows the treasurer of state to issue refunding bonds.
26 29 The bill provides for the creation of a vision Iowa fund as
26 30 a separate and distinct fund in the state treasury to be used
26 31 for purposes of the vision Iowa program. The bill provides
26 32 that revenue for the fund shall include proceeds of bonds
26 33 issued to capitalize the fund and other moneys received for
26 34 purposes of the fund. The bill provides that an applicant
26 35 shall not receive more than $75 million in financial
27 1 assistance from the fund. The bill provides the treasurer of
27 2 state with the power to establish reserve funds to secure one
27 3 or more issues of its bonds or notes.
27 4 The bill provides for the binding and valid nature of a
27 5 pledge made in respect of bonds or notes issued by the
27 6 treasurer of state. The bill provides that the state will not
27 7 limit or alter the rights and powers vested in the board or
27 8 the treasurer of state to fulfill the terms of a contract made
27 9 with respect to bonds or notes.
27 10 The bill provides the board with the ability to undertake a
27 11 project for two or more applicants jointly and combine, for
27 12 financing purposes, a project with some or all future projects
27 13 of an applicant.
27 14 The bill provides that the bonds and notes issued by the
27 15 treasurer of state are not debts of the state or of any
27 16 political subdivision of the state or a pledge of the faith
27 17 and credit of the state or of any political subdivision.
27 18 The bill provides for the liberal construction of the
27 19 bonding provisions of the bill.
27 20 The bill provides that repeal and reenactment of Code
27 21 sections relating to the community attraction and tourism
27 22 development program and fund are intended to be a continuation
27 23 of the prior statutes and that moneys in the current community
27 24 attraction and tourism fund shall not revert to any other
27 25 fund.
27 26 The bill creates a school infrastructure program and fund
27 27 to provide financial assistance in the form of grants to
27 28 certain school districts with infrastructure needs. The bill
27 29 provides that a school district may apply for financial
27 30 assistance under the program if the school meets the school
27 31 district's local match percentage through the issuance of
27 32 bonds, the local sales and services tax for school
27 33 infrastructure moneys received pursuant to section 422E.3, a
27 34 physical plant and equipment levy under Code chapter 298, or
27 35 other moneys locally obtained by the school district excluding
28 1 other state or federal grants. The bill provides that the
28 2 local match percentage means the lesser of 50 percent or the
28 3 quotient of the school district's capacity per pupil divided
28 4 by the capacity per pupil for the school district at the
28 5 fortieth percentile multiplied by 50. However, the bill
28 6 provides that the local match percentage shall not be less
28 7 than 20 percent. The bill provides that a school district's
28 8 local match requirement is equivalent to the total investment
28 9 of a project multiplied by the school district's local match
28 10 percentage. The bill provides for the calculation of capacity
28 11 per pupil by the department of education, in consultation with
28 12 the department of revenue and finance, the department of
28 13 management, and the legislative fiscal bureau. The bill
28 14 provides that a school district may apply for conditional
28 15 approval of a grant in order to secure the remaining costs of
28 16 the project.
28 17 The department is required to form a task force to review
28 18 applications for financial assistance under the school
28 19 infrastructure program and provide recommendations to the
28 20 school budget review committee.
28 21 The bill requires the school budget review committee to
28 22 review all applications for financial assistance to determine
28 23 qualifying grant recipients and to make recommendations to the
28 24 department of education, with the department making final
28 25 grant awards. The school budget review committee's
28 26 recommendations shall be based on certain criteria. The bill
28 27 provides that, under the program, grants shall be awarded each
28 28 year plus any unexpended moneys from previous years for a
28 29 period of five years. The bill provides that a school
28 30 district shall not receive more than one grant under the
28 31 program and that the grant shall equal the lesser of $1
28 32 million or the total capital investment of the project minus
28 33 the local match requirement.
28 34 The bill provides that applicants receiving financial
28 35 assistance under the program shall submit a progress report to
29 1 the department of education as requested by the department.
29 2 The bill amends the definition of public improvement in
29 3 Code chapter 384 to exclude urban renewal demolition.
29 4 The bill provides that this bill shall prevail over
29 5 provisions of 2000 Iowa Acts, House File 2392, if enacted,
29 6 relating to any amendments to the community attraction and
29 7 tourism development program and fund, which provisions are
29 8 void.
29 9 LSB 5232HV 78
29 10 tm/cls/14
Text: HF02576 Text: HF02578 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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