Text: HF02350 Text: HF02352 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 8.57, subsection 5, paragraph e, Code 1 2 Supplement 2001, 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 year beginning July 1, 2000, 1 5 and for each fiscal year thereafter, not more than a total of 1 6 sixty million dollars shall be deposited in the general fund 1 7 of the state in any fiscal year pursuant to sections 99D.17 1 8 and 99F.11. The next fifteen million dollars of the moneys 1 9 directed to be deposited in the general fund of the state in a 1 10 fiscal year pursuant to sections 99D.17 and 99F.11 shall be 1 11 deposited in the vision Iowa fund created in section 12.72 for 1 12 the fiscal year beginning July 1, 2000, and for each fiscal 1 13 year through the fiscal year beginning July 1, 2019. The next 1 14 five million dollars of the moneys directed to be deposited in 1 15 the general fund of the state in a fiscal year pursuant to 1 16 sections 99D.17 and 99F.11 shall be deposited in the school 1 17 infrastructure fund created in section 12.82 for the fiscal 1 18 year beginning July 1, 2000, and for each fiscal year 1 19 thereafter until the principal and interest on all bonds 1 20 issued by the treasurer of state pursuant to section 12.81 are 1 21 paid, as determined by the treasurer of state. The next 1 22 fifteen million dollars of the moneys directed to be deposited 1 23 in the general fund of the state in a fiscal year pursuant to 1 24 sections 99D.17 and 99F.11 shall be deposited in the center 1 25 for economic development and trade fund created in section 1 26 12.92 for the fiscal year beginning July 1, 2002, and for each 1 27 fiscal year through the fiscal year beginning July 1, 2021. 1 28 The total moneys in excess of the moneys deposited in the 1 29 general fund of the state, the vision Iowa fund,andthe 1 30 school infrastructure fund, and the center for economic 1 31 development and trade fund in a fiscal year shall be deposited 1 32 in the rebuild Iowa infrastructure fund and shall be used as 1 33 provided in this section, notwithstanding section 8.60. 1 34 If the total amount of moneys directed to be deposited in 1 35 the general fund of the state under sections 99D.17 and 99F.11 2 1 in a fiscal year is less than the total amount of moneys 2 2 directed to be deposited in the vision Iowa fund,andthe 2 3 school infrastructure fund, and the center for economic 2 4 development and trade fund in the fiscal year pursuant to this 2 5 paragraph "e", the difference shall be paid from lottery 2 6 revenues in the manner provided in section 99E.10, subsection 2 7 3. 2 8 Sec. 2. NEW SECTION. 12.91 GENERAL AND SPECIFIC BONDING 2 9 POWERS – CENTER FOR ECONOMIC DEVELOPMENT AND TRADE PROGRAM. 2 10 1. The treasurer of state may issue bonds upon the request 2 11 of the vision Iowa board created in section 15F.102 and do all 2 12 things necessary with respect to the purposes of the center 2 13 for economic development and trade fund. The treasurer of 2 14 state shall have all of the powers which are necessary to 2 15 issue and secure bonds and carry out the purposes of the fund. 2 16 The treasurer of state may issue bonds in principal amounts 2 17 which, in the opinion of the board, are necessary to provide 2 18 sufficient funds for the center for economic development and 2 19 trade fund created in section 12.92, the payment of interest 2 20 on the bonds, the establishment of reserves to secure the 2 21 bonds, the costs of issuance of the bonds, other expenditures 2 22 of the treasurer of state incident to and necessary or 2 23 convenient to carry out the bond issue for the fund, and all 2 24 other expenditures of the board necessary or convenient to 2 25 administer the fund; provided, however, excluding the issuance 2 26 of refunding bonds, bonds issued pursuant to this section 2 27 shall not be issued in an aggregate principal amount which 2 28 exceeds three hundred million dollars. The bonds are 2 29 investment securities and negotiable instruments within the 2 30 meaning of and for purposes of the uniform commercial code. 2 31 2. Bonds issued under this section are payable solely and 2 32 only out of the moneys, assets, or revenues of the center for 2 33 economic development and trade fund and any bond reserve funds 2 34 established pursuant to section 12.92, all of which may be 2 35 deposited with trustees or depositories in accordance with 3 1 bond or security documents and pledged by the board to the 3 2 payment thereof. Bonds issued under this section shall 3 3 contain on their face a statement that the bonds do not 3 4 constitute an indebtedness of the state. The treasurer of 3 5 state shall not pledge the credit or taxing power of this 3 6 state or any political subdivision of this state or make bonds 3 7 issued pursuant to this section payable out of any moneys 3 8 except those in the center for economic development and trade 3 9 fund. 3 10 3. The proceeds of bonds issued by the treasurer of state 3 11 and not required for immediate disbursement may be deposited 3 12 with a trustee or depository as provided in the bond documents 3 13 and invested or reinvested in any investment as directed by 3 14 the board and specified in the trust indenture, resolution, or 3 15 other instrument pursuant to which the bonds are issued 3 16 without regard to any limitation otherwise provided by law. 3 17 4. The bonds shall be: 3 18 a. In a form, issued in denominations, executed in a 3 19 manner, and payable over terms and with rights of redemption, 3 20 and be subject to such other terms and conditions as 3 21 prescribed in the trust indenture, resolution, or other 3 22 instrument authorizing their issuance. 3 23 b. Negotiable instruments under the laws of the state and 3 24 may be sold at prices, at public or private sale, and in a 3 25 manner, as prescribed by the treasurer of state. Chapters 3 26 73A, 74, 74A, and 75 do not apply to the sale or issuance of 3 27 the bonds. 3 28 c. Subject to the terms, conditions, and covenants 3 29 providing for the payment of the principal, redemption 3 30 premiums, if any, interest, and other terms, conditions, 3 31 covenants, and protective provisions safeguarding payment, not 3 32 inconsistent with this section and as determined by the trust 3 33 indenture, resolution, or other instrument authorizing their 3 34 issuance. 3 35 5. The bonds are securities in which public officers and 4 1 bodies of this state; political subdivisions of this state; 4 2 insurance companies and associations and other persons 4 3 carrying on an insurance business; banks, trust companies, 4 4 savings associations, savings and loan associations, and 4 5 investment companies; administrators, guardians, executors, 4 6 trustees, and other fiduciaries; and other persons authorized 4 7 to invest in bonds or other obligations of the state, may 4 8 properly and legally invest funds, including capital, in their 4 9 control or belonging to them. 4 10 6. Bonds must be authorized by a trust indenture, 4 11 resolution, or other instrument of the treasurer of state 4 12 approved by the board. However, a trust indenture, 4 13 resolution, or other instrument authorizing the issuance of 4 14 bonds may delegate to an officer of the board the power to 4 15 negotiate and fix the details of an issue of bonds. 4 16 7. Neither the resolution, trust agreement, nor any other 4 17 instrument by which a pledge is created needs to be recorded 4 18 or filed under the Iowa uniform commercial code to be valid, 4 19 binding, or effective. 4 20 8. Bonds issued under the provisions of this section are 4 21 declared to be issued for a general public and governmental 4 22 purpose and all bonds issued under this section shall be 4 23 exempt from taxation by the state of Iowa and the interest on 4 24 the bonds shall be exempt from the state income tax and the 4 25 state inheritance and estate tax. 4 26 9. Subject to the terms of any bond documents, moneys in 4 27 the center for economic development and trade fund may be 4 28 expended for administration expenses. 4 29 10. The treasurer of state may issue bonds for the purpose 4 30 of refunding any bonds or notes issued pursuant to this 4 31 section then outstanding, including the payment of any 4 32 redemption premiums thereon and any interest accrued or to 4 33 accrue to the date of redemption of the outstanding bonds or 4 34 notes. Until the proceeds of bonds issued for the purpose of 4 35 refunding outstanding bonds or notes are applied to the 5 1 purchase or retirement of outstanding bonds or notes or the 5 2 redemption of outstanding bonds or notes, the proceeds may be 5 3 placed in escrow and be invested and reinvested in accordance 5 4 with the provisions of this section. The interest, income, 5 5 and profits earned or realized on an investment may also be 5 6 applied to the payment of the outstanding bonds or notes to be 5 7 refunded by purchase, retirement, or redemption. After the 5 8 terms of the escrow have been fully satisfied and carried out, 5 9 any balance of proceeds and interest earned or realized on the 5 10 investments may be returned to the board for deposit in the 5 11 center for economic development and trade fund established in 5 12 section 12.92. All refunding bonds shall be issued and 5 13 secured and subject to the provisions of this chapter in the 5 14 same manner and to the same extent as other bonds issued 5 15 pursuant to this section. 5 16 Sec. 3. NEW SECTION. 12.92 CENTER FOR ECONOMIC 5 17 DEVELOPMENT AND TRADE FUND AND RESERVE FUNDS. 5 18 1. A center for economic development and trade fund is 5 19 created and established as a separate and distinct fund in the 5 20 state treasury. The moneys in the fund are appropriated to 5 21 the vision Iowa board for purposes of the center for economic 5 22 development and trade program established in section 15F.401. 5 23 Moneys in the fund shall not be subject to appropriation for 5 24 any other purpose by the general assembly, but shall be used 5 25 only for the purposes of the center for economic development 5 26 and trade fund. The treasurer of state shall act as custodian 5 27 of the fund and disburse moneys contained in the fund as 5 28 directed by the vision Iowa board, including automatic 5 29 disbursements of funds received pursuant to the terms of bond 5 30 indentures and documents and security provisions to trustees. 5 31 The fund shall be administered by the vision Iowa board which 5 32 shall make expenditures from the fund consistent with the 5 33 purposes of the center for economic development and trade 5 34 program without further appropriation. 5 35 2. Revenue for the center for economic development and 6 1 trade fund shall include, but is not limited to, the 6 2 following, which shall be deposited with the treasurer of 6 3 state or the treasurer's designee as provided by any bond or 6 4 security documents and credited to the fund: 6 5 a. The proceeds of bonds issued to capitalize and pay the 6 6 costs of the fund and investment earnings on the proceeds. 6 7 b. Interest attributable to investment of money in the 6 8 fund or an account of the fund. 6 9 c. Moneys in the form of a devise, gift, bequest, 6 10 donation, federal or other grant, reimbursement, repayment, 6 11 judgment, transfer, payment, or appropriation from any source 6 12 intended to be used for the purposes of the fund. 6 13 3. Moneys in the center for economic development and trade 6 14 fund are not subject to section 8.33. Notwithstanding section 6 15 12C.7, subsection 2, interest or earnings on moneys in the 6 16 fund shall be credited to the fund. 6 17 4. a. The treasurer of state may create and establish one 6 18 or more special funds, to be known as "bond reserve funds", to 6 19 secure one or more issues of bonds or notes issued pursuant to 6 20 section 12.91. The treasurer of state shall pay into each 6 21 bond reserve fund any moneys appropriated and made available 6 22 by the state or the treasurer for the purpose of the fund, any 6 23 proceeds of sale of notes or bonds to the extent provided in 6 24 the resolutions authorizing their issuance, and any other 6 25 moneys which may be available to the treasurer for the purpose 6 26 of the fund from any other sources. All moneys held in a bond 6 27 reserve fund, except as otherwise provided in this chapter, 6 28 shall be used as required solely for the payment of the 6 29 principal of bonds secured in whole or in part by the fund or 6 30 of the sinking fund payments with respect to the bonds, the 6 31 purchase or redemption of the bonds, the payment of interest 6 32 on the bonds, or the payments of any redemption premium 6 33 required to be paid when the bonds are redeemed prior to 6 34 maturity. 6 35 b. Moneys in a bond reserve fund shall not be withdrawn 7 1 from it at any time in an amount that will reduce the amount 7 2 of the fund to less than the bond reserve fund requirement 7 3 established for the fund, as provided in this subsection, 7 4 except for the purpose of making, with respect to bonds 7 5 secured in whole or in part by the fund, payment when due of 7 6 principal, interest, redemption premiums, and the sinking fund 7 7 payments with respect to the bonds for the payment of which 7 8 other moneys of the treasurer are not available. Any income 7 9 or interest earned by, or incremental to, a bond reserve fund 7 10 due to the investment of it may be transferred by the 7 11 treasurer to other funds or accounts to the extent the 7 12 transfer does not reduce the amount of that bond reserve fund 7 13 below the bond reserve fund requirement for it. 7 14 c. The treasurer of state shall not at any time issue 7 15 bonds, secured in whole or in part by a bond reserve fund if, 7 16 upon the issuance of the bonds, the amount in the bond reserve 7 17 fund will be less than the bond reserve fund requirement for 7 18 the fund, unless the treasurer at the time of issuance of the 7 19 bonds deposits in the fund from the proceeds of the bonds 7 20 issued or from other sources an amount which, together with 7 21 the amount then in the fund, will not be less than the bond 7 22 reserve fund requirement for the fund. For the purposes of 7 23 this subsection, the term "bond reserve fund requirement" 7 24 means, as of any particular date of computation, an amount of 7 25 money, as provided in the resolutions authorizing the bonds 7 26 with respect to which the fund is established. 7 27 d. To assure the continued solvency of any bonds secured 7 28 by the bond reserve fund, provision is made in paragraph "a" 7 29 for the accumulation in each bond reserve fund of an amount 7 30 equal to the bond reserve fund requirement for the fund. In 7 31 order further to assure maintenance of the bond reserve funds, 7 32 the treasurer shall, on or before January 1 of each calendar 7 33 year, make and deliver to the governor the treasurer's 7 34 certificate stating the sum, if any, required to restore each 7 35 bond reserve fund to the bond reserve fund requirement for 8 1 that fund. Within thirty days after the beginning of the 8 2 session of the general assembly next following the delivery of 8 3 the certificate, the governor shall submit to both houses 8 4 printed copies of a budget including the sum, if any, required 8 5 to restore each bond reserve fund to the bond reserve fund 8 6 requirement for that fund. Any sums appropriated by the 8 7 general assembly and paid to the treasurer pursuant to this 8 8 subsection shall be deposited by the authority in the 8 9 applicable bond reserve fund. 8 10 Sec. 4. NEW SECTION. 12.93 PLEDGES. 8 11 It is the intention of the general assembly that a pledge 8 12 made in respect of bonds or notes shall be valid and binding 8 13 from the time the pledge is made, that the money or property 8 14 so pledged and received after the pledge by the treasurer of 8 15 state shall immediately be subject to the lien of the pledge 8 16 without physical delivery or further act, and that the lien of 8 17 the pledge shall be valid and binding as against all parties 8 18 having claims of any kind in tort, contract, or otherwise 8 19 against the treasurer of state whether or not the parties have 8 20 notice of the lien. 8 21 Sec. 5. NEW SECTION. 12.94 LIMITATIONS. 8 22 Bonds or notes issued pursuant to section 12.91 are not 8 23 debts of the state, or of any political subdivision of the 8 24 state, and do not constitute a pledge of the faith and credit 8 25 of the state or a charge against the general credit or general 8 26 fund of the state. The issuance of any bonds or notes 8 27 pursuant to section 12.91 by the treasurer of state does not 8 28 directly, indirectly, or contingently obligate the state or a 8 29 political subdivision of the state to apply moneys from, or to 8 30 levy or pledge any form of taxation whatever, to the payment 8 31 of the bonds or notes. Bonds and notes issued under section 8 32 12.91 are payable solely and only from the sources and special 8 33 fund provided in section 12.92. 8 34 Sec. 6. Section 15F.103, subsections 2 and 4, Code 2001, 8 35 are amended to read as follows: 9 1 2. Establish the vision Iowa program,andthe community 9 2 attraction and tourism program, and the center for economic 9 3 development and trade program. 9 4 4. Request the treasurer of state to issue bonds on behalf 9 5 of the board for purposes of the vision Iowa program and the 9 6 center for economic development and trade program. 9 7 Sec. 7. Section 15F.104, Code 2001, is amended to read as 9 8 follows: 9 9 15F.104 DEPARTMENT DUTIES. 9 10 The department, subject to approval by the board, shall 9 11 adopt administrative rules pursuant to chapter 17A necessary 9 12 to administer the community attraction,andtourism program 9 13 and the vision Iowa program, and the center for economic 9 14 development and trade program. The department shall provide 9 15 the board with assistance in implementing administrative 9 16 functions, marketing the programs, providing technical 9 17 assistance and application assistance to applicants under the 9 18 programs, negotiating contracts, and providing project follow- 9 19 up. The department, in cooperation with the treasurer of 9 20 state, may conduct negotiations on behalf of the board with 9 21 applicants regarding terms and conditions applicable to awards 9 22 under the programs. 9 23 Sec. 8. NEW SECTION. 15F.401 CENTER FOR ECONOMIC 9 24 DEVELOPMENT AND TRADE PROGRAM – APPLICATIONS. 9 25 1. The board shall establish and administer a center for 9 26 economic development and trade program for purposes of 9 27 providing financial assistance to cities or counties in the 9 28 state for the construction of a center for economic 9 29 development and trade in the city or county. The financial 9 30 assistance shall be from the center for economic development 9 31 and trade fund created in section 12.92 and may take the form 9 32 of grants, loans, forgivable loans, pledges, or credit 9 33 enhancements and financing instruments. 9 34 2. The board shall accept and review applications 9 35 submitted by cities and counties for center for economic 10 1 development and trade program financial assistance. The board 10 2 shall approve two applications for financial assistance under 10 3 the program. An application submitted by a city or county 10 4 shall include all of the following: 10 5 a. An identification of investors. 10 6 b. A discussion regarding the feasibility of the proposal. 10 7 c. A strategy for incorporating the emphasis selected by 10 8 the board pursuant to 15F.402. 10 9 d. A plan for the construction, operation, and marketing 10 10 of the trade center. 10 11 e. Any other information deemed necessary by the board. 10 12 3. The board shall not award any financial assistance and 10 13 shall continue to accept applications if the board deems all 10 14 applications submitted to be inadequate. 10 15 Sec. 9. NEW SECTION. 15F.402 CENTER FOR ECONOMIC 10 16 DEVELOPMENT AND TRADE EMPHASIS. 10 17 Prior to soliciting applications from cities and counties 10 18 for center for economic development and trade program 10 19 financial assistance, the board shall determine the desired 10 20 emphasis of the proposed center for economic development and 10 21 trade. The emphasis shall either be value-added agriculture 10 22 or technology. 10 23 EXPLANATION 10 24 This bill creates the center for economic development and 10 25 trade program and fund, provides bonding authority to the 10 26 treasurer of state, and exempts certain income from taxation. 10 27 The bill provides that the vision Iowa board shall 10 28 establish and administer a center for economic development and 10 29 trade program for purposes of providing financial assistance 10 30 for the construction of two centers for economic development 10 31 and trade. The bill provides that the vision Iowa board shall 10 32 only approve two applications for financial assistance under 10 33 the program and that an application shall include an 10 34 identification of investors; a discussion regarding the 10 35 feasibility of the proposal; a strategy for incorporating the 11 1 emphasis selected by the vision Iowa board; a plan for the 11 2 construction, operation, and marketing of a center for 11 3 economic development and trade; and any other information 11 4 deemed necessary by the vision Iowa board. The bill provides 11 5 that the vision Iowa board shall not award any financial 11 6 assistance and shall continue to accept applications if the 11 7 board deems all applications submitted to be inadequate. 11 8 The bill provides that, prior to soliciting applications 11 9 from cities and counties for center for economic development 11 10 and trade program financial assistance, the vision Iowa board 11 11 shall choose the desired emphasis of a proposed center for 11 12 economic development and trade from either a value-added 11 13 agriculture emphasis or a technology emphasis. 11 14 The bill provides the treasurer of state with powers 11 15 relating to issuance of bonds and the deposit or disbursement 11 16 of bond proceeds. The bill provides that the bonds are 11 17 payable solely and only out of the moneys, assets, or revenues 11 18 of the center for economic development and trade fund and any 11 19 bond reserve funds. The bill provides for the form the bonds 11 20 shall take. The bill provides for persons authorized to 11 21 invest in the bonds, the manner in which the bonds shall be 11 22 authorized, and that the authorization does not need to be 11 23 recorded to be valid and binding. The bill provides that the 11 24 interest on the bonds shall be exempt from the state income 11 25 tax and the state inheritance and estate tax. The bill allows 11 26 the moneys in the center for economic development and trade 11 27 fund to be used for administrative purposes and allows the 11 28 treasurer of state to issue refunding bonds. 11 29 The bill provides for the creation of a center for economic 11 30 development and trade fund as a separate and distinct fund in 11 31 the state treasury to be used for purposes of the center for 11 32 economic development and trade program. The bill provides 11 33 that the fund is administered by the vision Iowa board and 11 34 that the board shall make expenditures from the fund 11 35 consistent with the purposes of the center for economic 12 1 development and trade program without further appropriation. 12 2 The bill provides that revenue for the fund shall include 12 3 proceeds of bonds issued to capitalize the fund and other 12 4 moneys received for purposes of the fund. The bill provides 12 5 the treasurer of state with the power to establish bond 12 6 reserve funds to secure one or more issues of its bonds or 12 7 notes. 12 8 The bill provides for the binding and valid nature of a 12 9 pledge made in respect of bonds or notes issued by the 12 10 treasurer of state. 12 11 The bill provides that obligations issued by the treasurer 12 12 of state are not debts of the state or of any political 12 13 subdivision of the state or a pledge of the faith and credit 12 14 of the state or of any political subdivision or a charge 12 15 against the general credit or general fund of the state. 12 16 The bill amends provisions relating to the rebuild Iowa 12 17 infrastructure fund. Currently, each fiscal year the first 12 18 $60 million of gambling revenues are deposited in the general 12 19 fund, the next $15 million is deposited in the vision Iowa 12 20 fund, the next $5 million is deposited in the school 12 21 infrastructure fund, and the remainder of the gambling 12 22 revenues is deposited in the rebuild Iowa infrastructure fund. 12 23 The bill provides that, prior to gambling revenues being 12 24 deposited in the rebuild Iowa infrastructure fund in the 12 25 fiscal year beginning July 1, 2002, and each fiscal year 12 26 thereafter through the fiscal year beginning July 1, 2021, $15 12 27 million of gambling revenues shall be deposited in the center 12 28 for economic development and trade fund. The bill includes 12 29 the center for economic development and trade fund under a 12 30 provision that provides that if the total amount of gambling 12 31 revenues in a fiscal year is less than the total amount of 12 32 moneys directed to be deposited in the vision Iowa fund and 12 33 the school infrastructure fund in the fiscal year, the 12 34 difference shall be paid from lottery revenues. 12 35 LSB 6125YH 79 13 1 tm/sh/8
Text: HF02350 Text: HF02352 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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