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PAG LIN 1 1 Section 1. Section 8.57, subsection 5, paragraph e, Code 1 2 1999, is amended to read as follows: 1 3 e. Notwithstanding provisions to the contrary in sections 1 4 99D.17 and 99F.11,
for the fiscal years beginning July 1,1 5 1995, and July 1, 1996,an amount, determined by the treasurer 1 6 of state, sufficient to make payments during the fiscal year 1 7 on the principal of, premium, if any, and interest on bonds 1 8 issued by the treasurer of state under section 12.71 shall be 1 9 deposited in the millennium fund created in section 15.291. 1 10 Notwithstanding provisions to the contrary in sections 99D.17 1 11 and 99F.11, after sufficient moneys are deposited in the 1 12 millennium fund, not more than a total of sixty million 1 13 dollars ; and for each fiscal year thereafter;shall be 1 14 deposited in the general fund of the state in any fiscal year 1 15 pursuant to sections 99D.17 and 99F.11. The total moneys in 1 16 excess of the moneys deposited in the millennium fund and the 1 17 general fund of the state in a fiscal year shall be deposited 1 18 in the rebuild Iowa infrastructure fund and shall be used as 1 19 provided in this section, notwithstanding section 8.60. 1 20 Sec. 2. NEW SECTION. 12.71 MILLENNIUM BONDS. 1 21 1. The treasurer of state may issue bonds for the purpose 1 22 of funding the millennium fund created in section 15.291 and 1 23 for the purpose of refunding any bonds issued under this 1 24 section. Excluding the issuance of refunding bonds, the 1 25 treasurer of state shall not issue bonds which result in the 1 26 deposit of bond proceeds of more than two hundred million 1 27 dollars credited to the millennium fund. Refunding bonds may 1 28 be issued and secured and subject to this section in the same 1 29 manner as other bonds issued pursuant to this section. 1 30 2. The bonds are investment securities and negotiable 1 31 instruments within the meaning of and for the purposes of the 1 32 uniform commercial code. 1 33 3. The treasurer of state is authorized to pledge amounts 1 34 deposited in the millennium fund created in section 15.291 as 1 35 security for the payment of the principal of, premium, if any, 2 1 and interest on the bonds. Bonds issued under this section 2 2 are payable solely and only out of the moneys, assets, or 2 3 revenues of the millennium fund and any bond reserve funds 2 4 established pursuant to section 12.72, all of which may be 2 5 deposited with trustees or depositories in accordance with 2 6 bond or security documents, and are not an indebtedness of 2 7 this state, or a charge against the general credit or general 2 8 fund of the state, and the state shall not be liable for the 2 9 bonds except from amounts on deposit in the funds. Bonds 2 10 issued under this section shall contain a statement that the 2 11 bonds do not constitute an indebtedness of the state. 2 12 4. The bonds shall be: 2 13 a. In a form, issued in denominations, executed in a 2 14 manner, payable over terms and with rights of redemption, and 2 15 subject to such other terms and conditions as prescribed in 2 16 the trust indenture, resolution, or other instrument 2 17 authorizing their issuance. 2 18 b. Negotiable instruments under the laws of this state and 2 19 may be sold at prices, at public or private sale, and in a 2 20 manner, as prescribed by the treasurer of state. Chapters 2 21 73A, 74, 74A, and 75 do not apply to the sale or issuance of 2 22 the bonds. 2 23 c. Subject to the terms, conditions, and covenants 2 24 providing for the payment of the principal, redemption 2 25 premiums, if any, interest, and other terms, conditions, 2 26 covenants, and protective provisions safeguarding payment, not 2 27 inconsistent with this section and as determined by the trust 2 28 indenture, resolution, or other instrument authorizing their 2 29 issuance. 2 30 5. The bonds are securities in which public officers and 2 31 bodies of this state, political subdivisions of this state, 2 32 insurance companies and associations and other persons 2 33 carrying on an insurance business, banks, trust companies, 2 34 savings associations, savings and loan associations, and 2 35 investment companies, administrators, guardians, executors, 3 1 trustees, and other fiduciaries, and other persons authorized 3 2 to invest in bonds or other obligations of the state, may 3 3 properly and legally invest funds, including capital, in their 3 4 control or belonging to them. 3 5 6. Bonds must be authorized by a trust indenture, 3 6 resolution, or other instrument of the treasurer of state. 3 7 However, a trust indenture, resolution, or other instrument 3 8 authorizing the issuance of bonds may delegate to an officer 3 9 of the issuer the power to negotiate and fix the details of an 3 10 issuance of bonds. 3 11 7. Neither the resolution, trust agreement, or any other 3 12 instrument by which a pledge is created is required to be 3 13 recorded or filed under the uniform commercial code to be 3 14 valid, binding, or effective. 3 15 8. All bonds issued by the treasurer of state in 3 16 connection with the program are exempt from taxation by the 3 17 state of Iowa and the interest on the bonds is exempt from 3 18 state income taxes and state inheritance and estate taxes. 3 19 9. The treasurer of state shall cooperate with the 3 20 department of economic development in the implementation of 3 21 this section. 3 22 Sec. 3. NEW SECTION. 12.72 BOND RESERVE FUNDS. 3 23 1. The treasurer of state may create and establish one or 3 24 more special funds, to be known as bond reserve funds, and 3 25 shall pay into each bond reserve fund any moneys appropriated 3 26 and made available by the treasurer of state for the purpose 3 27 of the fund, any proceeds of sale of notes or bonds to the 3 28 extent provided in the trust indenture, resolution, or other 3 29 instrument of the treasurer of state authorizing their 3 30 issuance, and any other moneys which may be available to the 3 31 treasurer of state for the purpose of the fund from any other 3 32 sources. All moneys held in a bond reserve fund, except as 3 33 otherwise provided in this section, shall be used as required 3 34 solely for the payment of the principal of bonds secured in 3 35 whole or in part by the fund or of the sinking fund payments 4 1 with respect to the bonds, the purchase or redemption of the 4 2 bonds, the payment of interest on the bonds, or the payments 4 3 of any redemption premium required to be paid when the bonds 4 4 are redeemed prior to maturity. 4 5 2. Moneys in a bond reserve fund shall not be withdrawn 4 6 from the fund at any time in an amount that will reduce the 4 7 amount of the fund to less than the bond reserve fund 4 8 requirement established for the fund, as provided in this 4 9 section, except for the purpose of making, with respect to 4 10 bonds secured in whole or in part by the fund, payment when 4 11 due of principal, interest, redemption premiums, and the 4 12 sinking fund payments with respect to the bonds for the 4 13 payment of which other moneys are not available. Any income 4 14 or interest earned by, or incremental to, a bond reserve fund 4 15 due to the investment of moneys in the fund may be transferred 4 16 by the treasurer of state to reserve funds or the millennium 4 17 fund to the extent the transfer does not reduce the amount of 4 18 that bond reserve fund below the bond reserve fund requirement 4 19 for the fund. 4 20 3. The treasurer of state shall not at any time issue 4 21 bonds, secured in whole or in part by a bond reserve fund, if, 4 22 upon the issuance of the bonds, the amount in the bond reserve 4 23 fund will be less than the bond reserve fund requirement for 4 24 the fund, unless the treasurer of state at the time of 4 25 issuance of the bonds deposits in the fund from the proceeds 4 26 of the bonds issued or from other sources an amount which, 4 27 together with the amount then in the fund, will not be less 4 28 than the bond reserve fund requirement for the fund. For the 4 29 purposes of this section, the term "bond reserve fund 4 30 requirement" means, as of any particular date of computation, 4 31 an amount of money, as provided in the trust indenture, 4 32 resolution, or other instrument of the treasurer of state 4 33 authorizing the bonds with respect to which the fund is 4 34 established, equal to not more than ten percent of the 4 35 outstanding principal amount of bonds secured in whole or in 5 1 part by the fund. 5 2 Sec. 4. NEW SECTION. 12.73 MILLENNIUM REVIEW COMMITTEE. 5 3 1. A millennium review committee is established to provide 5 4 assistance to the department of economic development regarding 5 5 the millennium program. The committee shall consist of seven 5 6 members, including the treasurer of state and six members 5 7 appointed by the governor and subject to confirmation by the 5 8 senate. The members appointed by the governor shall possess 5 9 an expertise in public finance issues. 5 10 2. All appointments shall comply with sections 69.16 and 5 11 69.16A. 5 12 3. The chairperson of the millennium review committee 5 13 shall be elected by the committee from among its membership 5 14 for a term of one year. A vice chairperson may be elected by 5 15 the committee from among its membership for a one-year term. 5 16 In case of the absence or disability of the chairperson and 5 17 vice chairperson, the members of the committee shall elect a 5 18 temporary chairperson by a majority vote of those members who 5 19 are present and voting. 5 20 4. The members, except the treasurer of state, shall be 5 21 appointed to three-year staggered terms and the terms shall 5 22 commence and end as provided by section 69.19. If a vacancy 5 23 occurs, a successor shall be appointed to serve the unexpired 5 24 term. A successor shall be appointed in the same manner and 5 25 subject to the same qualifications as the original appointee. 5 26 5. The millennium review committee shall review 5 27 applications submitted under the millennium program and make 5 28 recommendations to the department of economic development 5 29 regarding the applications. 5 30 6. A majority of the members of the millennium review 5 31 committee constitutes a quorum. 5 32 Sec. 5. NEW SECTION. 15.291 MILLENNIUM FUND. 5 33 1. The millennium fund is created as a separate and 5 34 distinct fund in the state treasury. The millennium fund 5 35 consists, in part, of moneys deposited in the fund pursuant to 6 1 section 8.57, subsection 5, paragraph "e". The millennium 6 2 fund also consists of any moneys appropriated to the fund by 6 3 the general assembly. Payments of interest or repayments of 6 4 financial assistance provided under the millennium program 6 5 shall be deposited in the millennium fund. Moneys received by 6 6 the treasurer of state as a result of a bond issuance pursuant 6 7 to section 12.71 shall be deposited in the millennium fund as 6 8 provided in section 12.71. Notwithstanding section 12C.7, 6 9 subsection 2, interest and other income earned by the 6 10 millennium fund shall be deposited in the millennium fund. 6 11 2. If the treasurer of state determines pursuant to 6 12 section 12.71 that bonds can be issued, the moneys in the 6 13 millennium fund are appropriated to and for the purpose of 6 14 paying the principal of, premium, if any, and interest on 6 15 bonds issued by the treasurer of state under section 12.71. 6 16 Amounts in the millennium fund shall not be subject to 6 17 appropriation for any purpose by the general assembly, but 6 18 shall be used only for the purposes set forth in this section, 6 19 section 12.71, and section 15.292. The treasurer of state 6 20 shall act as custodian of the millennium fund and disburse 6 21 amounts contained in the fund as directed by the department of 6 22 economic development, including the automatic disbursement of 6 23 moneys pursuant to the terms of bond indentures and documents 6 24 and security provisions to trustees and custodians. The 6 25 treasurer of state may invest the moneys deposited in the 6 26 millennium fund subject to any limitations contained in any 6 27 applicable bond proceedings. Notwithstanding section 8.33, 6 28 any balance in the fund on June 30 of any fiscal year shall be 6 29 transferred to the rebuild Iowa infrastructure fund created in 6 30 section 8.57, subsection 5. 6 31 Sec. 6. NEW SECTION. 15.292 MILLENNIUM PROGRAM. 6 32 1. The department shall establish and administer a 6 33 millennium program designed to assist political subdivisions 6 34 of this state in the development and creation of multiple- 6 35 purpose attraction, tourism, and cultural facilities. 7 1 Financial assistance from the millennium fund created under 7 2 section 15.291 and received under this program shall be used 7 3 for land acquisition and construction, major renovation, or 7 4 major repair of buildings, all appurtenant structures, 7 5 utilities, and site development. 7 6 2. In order for a political subdivision to be eligible for 7 7 financial assistance under the program, a minimum of fifty 7 8 percent of the total capital investment in the project shall 7 9 be provided through local and private sources and the local 7 10 and private investment shall be at least five million dollars. 7 11 3. A political subdivision of this state may submit an 7 12 application to the department for financial assistance for a 7 13 project under the program. The assistance shall be in the 7 14 form of grants, loans, forgivable loans, and loan guarantees. 7 15 The application shall include, but not be limited to, the 7 16 following: 7 17 a. The total capital investment of the project. 7 18 b. The amount and percentage of local and private matching 7 19 moneys which will be provided for the project. 7 20 c. The need of the political subdivision for the project 7 21 and the financial assistance. 7 22 d. The long-term, tax revenue-generating impact of the 7 23 project. 7 24 4. The millennium review committee established in section 7 25 12.72 shall make an initial review of all applications 7 26 submitted under the millennium program and make 7 27 recommendations to the department regarding each application. 7 28 Upon review of the recommendations by the review committee, 7 29 the department shall approve, deny, or defer each application. 7 30 In reviewing the applications, the department and review 7 31 committee shall consider, at a minimum, all of the following: 7 32 a. The extent to which such a project would generate 7 33 additional attraction and tourism opportunities. 7 34 b. The ability of the project to produce a long-term tax 7 35 generating economic impact. 8 1 EXPLANATION 8 2 This bill creates a millennium program and fund designed to 8 3 assist political subdivisions in this state in the development 8 4 and creation of multiple-purpose attraction, tourism, and 8 5 cultural facilities. 8 6 The bill provides that a political subdivision of the state 8 7 may apply to the department of economic development for 8 8 assistance under the millennium program and the financial 8 9 assistance shall be used for land acquisition and 8 10 construction, major renovation, or major repair of buildings, 8 11 all appurtenant structures, utilities, and site development. 8 12 The bill provides that a political subdivision must provide a 8 13 minimum of 50 percent of the total capital investment in the 8 14 project through local and private sources. The bill provides 8 15 that the millennium review committee shall make an initial 8 16 review of all applications and make recommendations to the 8 17 department. The department shall approve, deny, or defer each 8 18 application. The bill provides that the applications shall be 8 19 considered based on certain criteria relating to the 8 20 generation of additional attraction and tourism opportunities 8 21 and the long-term tax generating economic impact. 8 22 The bill creates a millennium review committee to make an 8 23 initial review of applications received under the millennium 8 24 program and to make recommendations regarding the applications 8 25 to the department of economic development. The committee 8 26 shall consist of seven members, including the treasurer of 8 27 state and six members appointed by the governor. The members 8 28 appointed by the governor shall possess an expertise in public 8 29 finance issues. 8 30 The bill creates a millennium fund as a separate and 8 31 distinct fund in the state treasury. The bill provides that 8 32 the fund, beginning July 1, 2000, shall receive moneys each 8 33 fiscal year from taxes on gaming receipts under Code chapters 8 34 99D and 99F in an amount sufficient to make payments on the 8 35 principal of, premium, if any, and interest on bonds issued by 9 1 the treasurer of state. The bill provides that the fund shall 9 2 also consist of any moneys appropriated to the fund by the 9 3 general assembly, payments of interest or repayments of 9 4 financial assistance under the program, and moneys received by 9 5 the treasurer of state pursuant to the issuance of millennium 9 6 bonds. The bill provides that, if millennium bonds are issued 9 7 by the treasurer of state, moneys in the fund are appropriated 9 8 to and for the purpose of paying the principal of, premium, if 9 9 any, and interest on the bonds. 9 10 The bill provides the treasurer of state with the authority 9 11 to issue millennium bonds. The bill provides that, excluding 9 12 refunding bonds, the treasurer of state shall not issue bonds 9 13 which result in the deposit of bond proceeds of more than $200 9 14 million credited to the millennium fund. The bill provides 9 15 that the treasurer of state may issue refunding bonds. The 9 16 bill provides that bonds are investment securities and 9 17 negotiable instruments. The bill provides that the treasurer 9 18 of state is authorized to pledge amounts deposited in the 9 19 millennium fund as security for the payment of the principal, 9 20 premium, if any, and interest on the bonds. The bill provides 9 21 that the bonds are payable solely and only out of the moneys, 9 22 assets, or revenues of the millennium fund and any bond 9 23 reserve funds established by the treasurer of state. The bill 9 24 provides that the bonds are not an indebtedness of the state, 9 25 or a charge against the general credit or general fund of the 9 26 state, and the state shall not be liable for the bonds except 9 27 from amounts on deposit in the fund. The bill provides 9 28 certain requirements relating to the actual issuance of the 9 29 bonds, authorization for the issuance of the bonds, and tax 9 30 exemption status of the bonds. 9 31 The bill provides that the treasurer of state may create 9 32 and establish one or more bond reserve funds. The bill 9 33 provides that moneys in the bond reserve fund shall be used as 9 34 required solely for the payment of the principal of bonds 9 35 secured in whole or in part by the fund or of the sinking fund 10 1 payments with respect to the bonds, the purchase or redemption 10 2 of the bonds, the payment of interest on the bonds, or the 10 3 payments of any redemption premium required to be paid when 10 4 the bonds are redeemed prior to maturity. The bill provides 10 5 restrictions on when moneys may be withdrawn from the bond 10 6 reserve funds. The bill provides limitations on when the 10 7 treasurer of state may issue bonds in relation to the bond 10 8 reserve fund requirement, which is the amount of money, on any 10 9 particular date, as provided in the instruments of the 10 10 treasurer authorizing the bonds with respect to which the fund 10 11 is established. 10 12 LSB 7128ST 78 10 13 tm/as/5
Text: SF02422 Text: SF02424 Text: SF02400 - SF02499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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