Text: HSB00257                          Text: HSB00259
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 258

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  15.370  TITLE.
  1  2    This part shall be known and may be cited as the "Strategic
  1  3 Tourism Advancement Reserve (STAR) Program".
  1  4    Sec. 2.  NEW SECTION.  15.371  STRATEGIC TOURISM
  1  5 ADVANCEMENT RESERVE (STAR) PROGRAM.
  1  6    1.  The department shall establish and administer a
  1  7 strategic tourism advancement reserve program to assist
  1  8 communities in the development and creation of multiple-
  1  9 purpose attraction and tourism facilities for which long-term
  1 10 financing is not required.  Financial assistance received
  1 11 under this program shall be used for land acquisition and
  1 12 construction, major renovation, or major repair of buildings,
  1 13 all appurtenant structures, utilities, site development, and
  1 14 recreational trails.
  1 15    2.  A political subdivision of this state or a public
  1 16 organization may submit an application to the department for
  1 17 financial assistance for a project under the program.  The
  1 18 assistance shall be in the form of grants, loans, forgivable
  1 19 loans, and loan guarantees.  The application shall include,
  1 20 but not be limited to, the following information:
  1 21    a.  The total capital investment of the project.
  1 22    b.  The amount or percentage of local and private matching
  1 23 moneys which will be provided for the project.
  1 24    c.  The total number of jobs to be created or retained by
  1 25 the project.
  1 26    d.  The need of the community for the project and the
  1 27 financial assistance.
  1 28    e.  The long-term, tax revenue generating impact of the
  1 29 project.
  1 30    Sec. 3.  NEW SECTION.  15.372  STRATEGIC TOURISM
  1 31 ADVANCEMENT RESERVE (STAR) FUND.
  1 32    1.  There is established in the state treasury a strategic
  1 33 tourism advancement reserve fund consisting of any moneys
  1 34 appropriated by the general assembly for that purpose and any
  1 35 other moneys available to and obtained or accepted by the
  2  1 department for placement in the fund.
  2  2    2.  Payments of interest, repayments of moneys loaned
  2  3 pursuant to this part, and recaptures of awards shall be
  2  4 deposited in the fund.
  2  5    3.  The fund may be used by the department for any of the
  2  6 following purposes:
  2  7    a.  To provide grants, loans, forgivable loans, and loan
  2  8 guarantees under the strategic tourism advancement reserve
  2  9 program established in section 15.371.
  2 10    b.  To provide the basis for a marketing and promotion
  2 11 strategy through approved planning, regional assessments,
  2 12 community mobilization, and market research such as traveler
  2 13 profiles, preferences, travel patterns, and desired
  2 14 activities.
  2 15    Sec. 4.  NEW SECTION.  15.373  STRATEGIC TOURISM
  2 16 ADVANCEMENT RESERVE (STAR) PROGRAM REVIEW COMMITTEE –
  2 17 APPLICATION REVIEW.
  2 18    1.  A strategic tourism advancement reserve program review
  2 19 committee is established consisting of seven members.  The
  2 20 director shall appoint one member representing the travel
  2 21 federation of Iowa, one member representing gaming facilities,
  2 22 one member representing an association with expertise in the
  2 23 vertical infrastructure industry, one member representing a
  2 24 state board of regents institution with expertise in economic
  2 25 promotion, one member representing a council of governments,
  2 26 and one member representing the professional developers of
  2 27 Iowa.  The governor shall appoint the remaining member.
  2 28    2.  The strategic tourism advancement reserve program
  2 29 review committee shall review applications for strategic
  2 30 tourism advancement reserve fund assistance and make
  2 31 recommendations to the department regarding the applications.
  2 32 Upon review of the recommendations of the committee, the
  2 33 department shall approve, defer, or deny applications.
  2 34    3.  When reviewing the applications, the strategic tourism
  2 35 advancement reserve program review committee and the
  3  1 department shall consider, at a minimum, all of the following:
  3  2    a.  Whether the wages, benefits, including health benefits,
  3  3 safety, and other attributes of the project would improve the
  3  4 quality of attraction and tourism employment in the community.
  3  5    b.  The extent to which such a project would generate
  3  6 additional attraction and tourism opportunities.
  3  7    c.  The ability of the project to produce a long-term, tax
  3  8 revenue generating economic impact.
  3  9    d.  The geographic diversity of the projects in the
  3 10 applications.
  3 11    Sec. 5.  NEW SECTION.  15.374  TITLE.
  3 12    This part shall be known any may be cited as the "Strategic
  3 13 Tourism Advancement Reserve Bond (STAR BOND) Program".
  3 14    Sec. 6.  NEW SECTION.  15.375  DEFINITIONS.
  3 15    As used in this part, unless the context otherwise
  3 16 requires:
  3 17    1.  "Oversight authority" means that body, which is
  3 18 responsible for reviewing applications for and making
  3 19 determinations of qualification as a star bond project as
  3 20 provided in section 15.377, subsection 2.  The authority
  3 21 consists of the director of the department of economic
  3 22 development and the director of revenue and finance.
  3 23    2.  "Pledged receipts" means state retail sales tax
  3 24 appropriations, investment earnings, gifts, grants, issuer
  3 25 appropriations, or any other appropriations from any source
  3 26 intended to be used for the purpose of the star bond fund,
  3 27 pledged by the issuer for the payment of star bonds issued
  3 28 under this part.
  3 29    3.  "Star bond" means a bond payable from the star bond
  3 30 fund.
  3 31    4.  "Star bond fund" means the star bond fund established
  3 32 by section 15.376 of this part.
  3 33    5.  "Star bond project" means a project designated as a
  3 34 qualified star bond project by the oversight authority.
  3 35    6.  "Vertical infrastructure" means the same as defined in
  4  1 section 8.57, subsection 5, paragraph "c".
  4  2    Sec. 7.  NEW SECTION.  15.376  ESTABLISHMENT OF STAR BOND
  4  3 FUND.
  4  4    1.  The star bond fund is created as a separate fund in the
  4  5 state treasury.  Notwithstanding section 8.33, any funds
  4  6 remaining in the star bond fund at the end of each fiscal year
  4  7 shall not revert to the general fund or any other fund but
  4  8 shall remain in the star bond fund.  The star bond fund shall
  4  9 include moneys credited to the star bond fund under this part,
  4 10 section 422.105, and other funds which may by law be credited
  4 11 to the star bond fund.  The moneys in the star bond fund are
  4 12 appropriated for the purposes of this part.  Amounts in the
  4 13 star bond fund shall not be subject to appropriation for any
  4 14 other purpose by the general assembly, but shall be used only
  4 15 for the purposes set forth in this part.  The treasurer of
  4 16 state shall act as custodian of the star bond fund and
  4 17 disburse amounts contained in it as directed by the
  4 18 department, including automatic disbursements of funds
  4 19 received pursuant to the terms of bond indentures and
  4 20 documents and security provisions to trustees and custodians.
  4 21 The treasurer of state is authorized to invest the funds
  4 22 deposited in the star bond fund at the direction of the
  4 23 department and subject to any limitations contained in any
  4 24 applicable bond proceedings.  Notwithstanding section 12C.7,
  4 25 subsection 2, interest or earnings on moneys deposited in the
  4 26 star bond fund shall be credited to and deposited in the star
  4 27 bond fund.  The star bond fund may be divided into different
  4 28 accounts with different depositories as determined by the
  4 29 department and to fulfill the purposes of this part.
  4 30    2.  The star bond fund may be used only for the purpose of
  4 31 providing for the payment of star bonds issued by one or more
  4 32 counties for qualified star bond projects.
  4 33    3.  The following political subdivisions and public
  4 34 instrumentalities may be an issuer of bonds payable from the
  4 35 star bond fund:
  5  1    a.  A county.
  5  2    b.  Two or more counties joined in a project by an
  5  3 agreement under chapter 28E.
  5  4    c.  The Iowa finance authority, which may finance bonds as
  5  5 a pooled issued under section 16.107, on behalf of one or more
  5  6 counties.
  5  7    4.  Star bonds issued under the authority of this part
  5  8 shall be limited obligations of the issuer.  The principal of
  5  9 and interest on star bonds shall be payable solely out of the
  5 10 pledged receipts committed to the star bond project under
  5 11 section 15.381.  Star bonds and interest coupons issued under
  5 12 authority of this part shall not constitute an indebtedness of
  5 13 the issuer or of the state, within the meaning of any state
  5 14 constitutional provision or statutory limitation, and shall
  5 15 not constitute nor give rise to pecuniary liability on the
  5 16 part of the issuer or of the state, or a charge against the
  5 17 general credit or taxing powers of the issuer or of the state.
  5 18 Such limitation shall be plainly stated on the face of each
  5 19 bond.
  5 20    5.  The state, the general fund of the state, or any other
  5 21 fund of the state, other than the star bond fund is not liable
  5 22 for a claim or cause of action in connection with the star
  5 23 bond fund.  All expenses incurred by the star bond fund shall
  5 24 be payable solely from the star bond fund and no liability or
  5 25 obligation shall be imposed upon the state.  The liability of
  5 26 the star bond fund is limited by the moneys available to the
  5 27 star bond fund, and no remedy shall be ordered which would
  5 28 require the star bond fund to exceed its then current funding
  5 29 limitations to satisfy a claim.  The state is not liable for a
  5 30 claim presented against the star bond fund.
  5 31    Sec. 8.   NEW SECTION.  15.377  PROCESS FOR APPROVAL AS A
  5 32 QUALIFIED STAR BOND PROJECT.
  5 33    1.  All of the following criteria shall be considered in
  5 34 making a determination of star bond project qualification:
  5 35    a.  Whether the project is a vertical infrastructure
  6  1 project with demonstrated substantial regional or statewide
  6  2 economic impact, as shown by independent analysis.
  6  3    b.  The demonstrated capacity for the project to become
  6  4 self-sustaining and self-sufficient prior to the repayment of
  6  5 the star bonds.
  6  6    c.  Evidence that the project supports or is strategically
  6  7 aligned with other existing regional or statewide cultural,
  6  8 recreational, and entertainment activities.
  6  9    d.  Evidence that the project will increase the diversity
  6 10 of activities available to citizens, workers, families and
  6 11 tourists, and enhance recruitment and retention of young
  6 12 people as residents.
  6 13    e.  The existence of economic or other obstacles impeding
  6 14 local financing of the project.
  6 15    f.  The potential for significant contribution to projected
  6 16 growth of retail sales tax revenue and economic activity
  6 17 within the county or multicounty area.
  6 18    g.  The existence of substantial local public and private
  6 19 contribution which shall be not less than ten percent of
  6 20 project costs.
  6 21    2.  The oversight authority of star bond projects shall be
  6 22 made up of the following officials:
  6 23    a.  The director of the Iowa department of economic
  6 24 development, who shall review applications for qualification
  6 25 as a star bond project, make the final determination of
  6 26 qualification as a star bond project, and issue a certificate
  6 27 of approval as a star bond project.
  6 28    b.  The director of revenue and finance, who shall
  6 29 determine whether the star bond fund annual projections of
  6 30 pledged receipts will exceed the combined debt service for all
  6 31 approved star bond projects by at least five percent.
  6 32    The oversight authority shall annually provide reports to
  6 33 the legislative fiscal bureau as to projects approved and
  6 34 their performance.  The oversight authority may adopt rules
  6 35 under chapter 17A for the regulation of its affairs and to
  7  1 carry out its duties and responsibilities.  The oversight
  7  2 authority is subject to the provisions of chapter 17A.
  7  3    Sec. 9.  NEW SECTION.  15.378  REVENUE SOURCES FOR STAR
  7  4 BOND FUND.
  7  5    Revenue for the star bond fund shall include, but is not
  7  6 limited to, the following, which shall be deposited with the
  7  7 department or its designee as provided by any bond or security
  7  8 documents and credited to the star bond fund:
  7  9    1.  SALES TAX GROWTH.  State retail sales tax revenues
  7 10 appropriated to the fund as provided in section 422.105.
  7 11    2.  OTHER SOURCES.  Interest attributable to investment of
  7 12 moneys from the star bond fund or an account of the star bond
  7 13 fund.  Revenue or other moneys in the form of a devise, gift,
  7 14 bequest, donation, federal or other grant, reimbursement,
  7 15 repayment, judgment, transfer, payment, or appropriation from
  7 16 any source intended to be used for the purposes of the star
  7 17 bond fund.
  7 18    Sec. 10.  NEW SECTION.  15.379  STAR BOND AUTHORIZATION.
  7 19    Before the governing body of the issuer institutes
  7 20 proceedings for the issuance of star bonds, it shall fix a
  7 21 time and place of meeting at which it proposes to take action,
  7 22 and give notice by publication in the manner directed in
  7 23 section 331.305.  The notice must include a statement of the
  7 24 time and place of the meeting, the maximum amount of the
  7 25 proposed bonds, and the purpose for which the bonds will be
  7 26 issued.  At the meeting, the governing body of the issuer
  7 27 shall receive oral or written objections from any resident or
  7 28 property owner of the county or counties.  After all
  7 29 objections have been received and considered, the governing
  7 30 body of the issuer, at the meeting or a date to which it is
  7 31 adjourned, may take additional action for the issuance of the
  7 32 bonds or abandon the proposal to issue bonds.  Any resident or
  7 33 property owner of the county or counties may appeal a decision
  7 34 of the governing body of the issuer to take additional action
  7 35 to the district court of the county within fifteen days after
  8  1 the additional action is taken.  The additional action of the
  8  2 governing body is final and conclusive unless the court finds
  8  3 that the governing body exceeded its authority.  The
  8  4 provisions of this section with respect to notice, hearing,
  8  5 and appeal are in lieu of those contained in any other law.
  8  6    Sec. 11.  NEW SECTION.  15.380  LOCAL BOND AUTHORIZATION.
  8  7    1.  An issuer of star bonds may issue general obligation
  8  8 bonds for the purpose of contributing to the funding of star
  8  9 bond projects.
  8 10    2.  A referendum may be held with respect to funding
  8 11 contributed from local property taxes and shall be required if
  8 12 such amount exceeds the following:
  8 13    a.  One million dollars in a county, or counties with a
  8 14 combined project, having a population of twenty-five thousand
  8 15 or less.
  8 16    b.  Two million dollars in a county, or counties with a
  8 17 combined project, having a population of more than twenty-five
  8 18 thousand but not more than fifty thousand.
  8 19    c.  Three million dollars in a county, or counties with a
  8 20 combined project, having a population of more than fifty
  8 21 thousand but not more than one hundred thousand.
  8 22    d.  Five million dollars in a county, or counties with a
  8 23 combined project, having a population of more than one hundred
  8 24 thousand but not more than two hundred thousand.
  8 25    e.  Ten million dollars in a county, or counties having a
  8 26 combined project, having a population of more than two hundred
  8 27 thousand.
  8 28    3.  The conduct of the referendum shall be by order of the
  8 29 governing body of the issuer.  The referendum shall be
  8 30 conducted by special election, which may coincide with a
  8 31 regular election, except as limited by law.  The referendum
  8 32 shall be adopted by a simple majority vote, which in the case
  8 33 of a multiple county project shall mean a simple majority vote
  8 34 of the total vote cast in all counties.
  8 35    4.  With respect to any amount for which a referendum is
  9  1 not held as provided in subsection 2, notice and hearing shall
  9  2 be required in the same manner as is required for star bond
  9  3 authorization.
  9  4    Sec. 12.  NEW SECTION.  15.381  STAR BOND TERMS SET BY
  9  5 ISSUER.
  9  6    1.  Bonds issued under this part shall be called star
  9  7 bonds, payable from the star bond fund of the state.
  9  8    2.  Payment of star bonds shall be from pledged receipts
  9  9 from the fund.  An issuer of star bonds shall obtain a
  9 10 determination by the oversight authority of the amount
  9 11 committed from the star bond fund for the payment of bond
  9 12 principal and interest.  Upon receipt of the commitment, the
  9 13 issuer is authorized to pledge the pledged receipts from the
  9 14 star bond fund in the amount required to provide for
  9 15 principal, interest, and reserves for the star bonds.
  9 16    3.  Star bonds shall be in a form, issued in denominations,
  9 17 executed in a manner, and payable over terms and with rights
  9 18 of redemption, and be subject to such other terms and
  9 19 conditions as prescribed in the resolution of the governing
  9 20 body of the issuer, which shall include the following:
  9 21    a.  Maturity dates shall not exceed twenty-six years from
  9 22 the date of issuance.  Term bonds may be issued.  Any number
  9 23 of series of bonds may be issued.
  9 24    b.  A bond reserve fund of up to ten percent of the issue
  9 25 may be funded, either by capitalization in a bond issue or
  9 26 from revenues of the fund.
  9 27    c.  An operating reserve fund of up to five percent of the
  9 28 issue may be funded in the same manner as the bond reserve
  9 29 fund.
  9 30    d.  If revenues received by the issuer are insufficient in
  9 31 any year to comply with the bond terms, the issuer may fund
  9 32 the shortfall by issuing warrants in anticipation of future
  9 33 funding.  The director of revenue and finance shall
  9 34 immediately report such deficiency and its amount or any draw
  9 35 on a reserve fund of a star bond issue to the governor.
 10  1    e.  To ensure maintenance of the bond reserve funds, the
 10  2 director of revenue and finance shall, on or before July 1 of
 10  3 each year, make and deliver to the governor a certificate
 10  4 stating the sum, if any, required to restore each bond reserve
 10  5 fund to the reserve fund requirement for that fund.  Within
 10  6 thirty days after the beginning of the session of the general
 10  7 assembly next following the delivery of the certificate, the
 10  8 governor may submit to both houses printed copies of a budget
 10  9 including the sum, if any, required to restore each bond
 10 10 reserve fund to the reserve fund requirement for that fund.
 10 11 Any sums appropriated by the general assembly and paid to the
 10 12 authority pursuant to this part shall be deposited in the
 10 13 applicable bond reserve fund.  All amounts paid by the state
 10 14 pursuant to this part shall be considered advances by the
 10 15 state and, subject to the rights of the holders of any star
 10 16 bonds that have previously been issued or will be issued,
 10 17 shall be repaid to the state without interest from all
 10 18 available revenues of the star bond fund in excess of amounts
 10 19 required for the payment of star bonds, the reserve funds, and
 10 20 operating expenses.
 10 21    f.  The star bonds are negotiable instruments under the
 10 22 laws of the state and may be sold at prices, at public or
 10 23 private sale, and in the manner prescribed by the governing
 10 24 body of the issuer.  Chapters 73A, 75, and 76 do not apply to
 10 25 the sale or issuance of star bonds.
 10 26    4.  Tax revenues which the issuer receives shall not be
 10 27 pledged for payment of star bonds.  Except for those tax
 10 28 revenues available pursuant to this part, the state shall not
 10 29 appropriate tax revenues, directly or indirectly, to an issuer
 10 30 for the purpose of payment of obligations of the issuer
 10 31 pursuant to this part.  Except as provided in this part, star
 10 32 bonds issued under this part are payable solely and only out
 10 33 of the pledged receipts of the star bond fund as designated in
 10 34 the bond proceedings, all of which may be deposited with
 10 35 trustees or depositories in accordance with bond or security
 11  1 documents and pledged by the issuer to the payment thereof,
 11  2 and are not an indebtedness of this state or the issuer, or a
 11  3 charge against the general credit or general fund of the state
 11  4 or the issuer, and the state shall not be liable for any
 11  5 financial undertakings with respect to the fund.  Star bonds
 11  6 issued under this part shall contain on their face a statement
 11  7 that the bonds do not constitute an indebtedness of the state
 11  8 or the issuer.
 11  9    5.  The proceeds of star bonds issued by the issuer and not
 11 10 required for immediate disbursement may be deposited with a
 11 11 trustee or depository as provided in the bond documents and
 11 12 invested in any investment approved by the issuer and
 11 13 specified in the trust indenture, resolution, or other
 11 14 instrument pursuant to which the bonds are issued without
 11 15 regard to any limitation otherwise provided by law.
 11 16    6.  Star bonds are securities in which public officers and
 11 17 bodies of this state; political subdivisions of this state;
 11 18 insurance companies and associations and other persons
 11 19 carrying on an insurance business; banks, trust companies,
 11 20 savings associations, savings and loan associations, and
 11 21 investment companies; administrators, guardians, executors,
 11 22 trustees, and other fiduciaries; and other persons authorized
 11 23 to invest in bonds or other obligations of the state, may
 11 24 properly and legally invest funds, including capital, in their
 11 25 control or belonging to them.
 11 26    7.  Star bonds must be authorized by a trust indenture,
 11 27 resolution, or other instrument of the issuer.  However, a
 11 28 trust indenture, resolution, or other instrument authorizing
 11 29 the issuance of star bonds may delegate to an officer of the
 11 30 issuer the power to negotiate and fix the details of an issue
 11 31 of the star bonds.
 11 32    8.  The resolution, trust agreement, or any other
 11 33 instrument by which a pledge is created does not need to be
 11 34 recorded or filed under the Iowa uniform commercial code to be
 11 35 valid, binding, or effective.
 12  1    9.  Star bonds issued under the provisions of this part are
 12  2 declared to be issued for an essential public and governmental
 12  3 purpose.
 12  4    Sec. 13.  NEW SECTION.  422.105  ALLOCATION TO THE
 12  5 STRATEGIC TOURISM ADVANCEMENT RESERVE (STAR BOND) FUND.
 12  6    1.  There is appropriated annually from the general fund of
 12  7 the state, subject to subsection 2, to the strategic tourism
 12  8 advancement reserve bond (star bond) fund created in section
 12  9 15.376, an amount equal to one-half of the increase, if any,
 12 10 in state retail sales tax revenues deposited into the general
 12 11 fund of the state for the prior fiscal year over the amount of
 12 12 state retail sales tax revenues deposited into the general
 12 13 fund of the state for the fiscal year beginning July 1, 1997.
 12 14 "Retail sales tax" means the tax imposed pursuant to chapter
 12 15 422, division IV.
 12 16    2.  The amount appropriated pursuant to subsection 1 in a
 12 17 fiscal year shall equal at least an amount required to service
 12 18 outstanding star bonds issued pursuant to the star bond
 12 19 program in chapter 15 but the amount appropriated shall not
 12 20 exceed fifty million dollars in a fiscal year.
 12 21    3.  The treasurer of state shall transfer the amount of the
 12 22 appropriation pursuant to subsections 1 and 2 in July of each
 12 23 year or as soon thereafter as is possible.
 12 24    Sec. 14.  APPROPRIATION.  There is appropriated from the
 12 25 rebuild Iowa infrastructure fund to the department of economic
 12 26 development for the fiscal year beginning July 1, 1999, and
 12 27 ending June 30, 2000, the following amount, or so much thereof
 12 28 as is necessary, to be used for the purpose designated:
 12 29    For the strategic tourism advancement reserve fund created
 12 30 in section 15.372:  
 12 31 .................................................. $ 15,000,000
 12 32    Sec. 15.  This Act, being deemed of immediate importance,
 12 33 takes effect upon enactment.  
 12 34                           EXPLANATION 
 12 35    This bill establishes the strategic tourism advancement
 13  1 reserve (STAR) program.  The bill provides that the program
 13  2 will assist communities in the development and creation of
 13  3 multiple purpose attraction and tourism facilities.  A
 13  4 political subdivision of the state or a public organization
 13  5 may submit an application for financial assistance under the
 13  6 program.  The bill provides that all applications are
 13  7 initially reviewed by the seven-member strategic tourism
 13  8 advancement reserve program review committee.  After reviewing
 13  9 the recommendations by the committee, the department is
 13 10 required to approve, defer, or deny an application.  The bill
 13 11 provides that criteria which are to be considered in reviewing
 13 12 the application include the projected employment impact of the
 13 13 project, the projected attraction and tourism opportunities
 13 14 generated by the project, the projected economic impact of the
 13 15 project, and the geographic diversity of the projects in the
 13 16 applications.
 13 17    The bill also establishes the strategic tourism advancement
 13 18 reserve (STAR) fund.  The bill provides that the fund is to be
 13 19 used for funding projects under the strategic tourism
 13 20 advancement reserve program and to provide the basis for a
 13 21 marketing and promotion strategy.  The bill appropriates $15
 13 22 million from the rebuild Iowa infrastructure fund for the
 13 23 fiscal year beginning July 1, 1999, and ending June 30, 2000.
 13 24    This bill also establishes the strategic tourism
 13 25 advancement reserve bond (star bond) fund as a permanent fund
 13 26 of the state, dedicated to the support of star bond projects.
 13 27 The bill provides that the star bond fund may be used only for
 13 28 the purpose of providing for the payment of strategic tourism
 13 29 advancement reserve bonds issued by one or more counties from
 13 30 the star bond fund for qualified star bond projects.  The bill
 13 31 provides that the funding source of the star bond fund shall
 13 32 for each fiscal year equal one-half of the growth in state
 13 33 sales tax collections over the fiscal year 1997-1998 sales tax
 13 34 collections, such amount not to exceed $50 million per year,
 13 35 but not less than the amount required to service outstanding
 14  1 star bonds.  The bill also provides that issuers of star bonds
 14  2 may also issue general obligation bonds for the purpose of
 14  3 contributing to the funding of star bond projects.
 14  4    The bill provides that star bonds payable from the star
 14  5 bond fund are not debt obligations of the state.  The
 14  6 principal of and interest on such star bonds shall be payable
 14  7 solely out of the pledged receipts committed to the star bond
 14  8 project.  Star bonds and interest coupons issued under
 14  9 authority of this part shall never constitute an indebtedness
 14 10 of the issuer or of the state, within the meaning of any state
 14 11 constitutional provision or statutory limitation, and shall
 14 12 not constitute nor give rise to a pecuniary liability of the
 14 13 issuer or of the state, or a charge against the general credit
 14 14 or taxing powers of the issuer or of the state.  The bill
 14 15 provides that such limitation shall be plainly stated on the
 14 16 face of each bond.
 14 17    The bill takes effect upon enactment.  
 14 18 LSB 3331HC 78
 14 19 mg/cf/24
     

Text: HSB00257                          Text: HSB00259
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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