Text: HF02579 Text: HF02581 Text: HF02500 - HF02599 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 by adding the following new
1 3 unnumbered paragraph:
1 4 NEW UNNUMBERED PARAGRAPH. Of the sixty million dollars to
1 5 be deposited in the general fund of the state in a fiscal year
1 6 pursuant to this paragraph "e", there shall be deposited into
1 7 the between the rivers award program repayment account created
1 8 in section 261.135 an amount, not to exceed fifteen million
1 9 dollars, to pay principal and interest on bonds issued for the
1 10 between the rivers award program pursuant to section 16.190.
1 11 Sec. 2. NEW SECTION. 16.190 BETWEEN THE RIVERS AWARD
1 12 PILOT PROGRAM BONDS.
1 13 1. The authority is authorized to issue its bonds to
1 14 provide financing as provided in this section for grants and
1 15 loans under the between the rivers award pilot program
1 16 established in section 261.131 by the college student aid
1 17 commission. Bonds may be issued in order to fund the pilot
1 18 program, the payment of interest on the bonds, the
1 19 establishment of reserves to secure the bonds, the costs of
1 20 issuance of the bonds, and other expenditures incident to or
1 21 necessary or convenient to carry out the bond issue. The
1 22 bonds are investment securities and negotiable instruments
1 23 within the meaning of and for the purposes of the uniform
1 24 commercial code.
1 25 2. The college student aid commission shall pledge amounts
1 26 in the between the rivers award program repayment account
1 27 established under section 261.135, subsection 2, as security
1 28 for the payment of the principal of, premium, if any, and
1 29 interest on the bonds. Bonds issued under this section are
1 30 payable solely and only out of the moneys, assets, or revenues
1 31 of the repayment account, all of which may be deposited with
1 32 trustees or depositories in accordance with bond or security
1 33 documents, and are not an indebtedness of this state or the
1 34 authority, or a charge against the general credit or general
1 35 fund of the state or the authority, and the state shall not be
2 1 liable for the bonds except from amounts deposited in the
2 2 repayment account. Bonds issued under this section shall
2 3 contain a statement that the bonds do not constitute an
2 4 indebtedness of the state or the authority.
2 5 3. Bonds shall not be issued until such time as determined
2 6 by the college student aid commission. The amount of bonds
2 7 that may be issued pursuant to this section shall not exceed
2 8 one hundred fifty million dollars.
2 9 4. The proceeds of bonds issued by the authority and not
2 10 required for immediate disbursement may be deposited with a
2 11 trustee or depository as provided in the bond documents and
2 12 invested in any investment approved by the authority and
2 13 specified in the trust indenture, resolution, or other
2 14 instrument pursuant to which the bonds are issued without
2 15 regard to any limitation otherwise provided by law.
2 16 5. The bonds shall be:
2 17 a. In a form, issued in denominations, executed in a
2 18 manner, and payable over terms and with rights of redemption,
2 19 and be subject to such other terms and conditions as
2 20 prescribed in the trust indenture, resolution, or other
2 21 instrument authorizing their issuance.
2 22 b. Negotiable instruments under the laws of this state and
2 23 may be sold at prices, at public or private sale, and in a
2 24 manner, as prescribed by the authority. Chapters 73A, 74,
2 25 74A, and 75 do not apply to the sale or issuance of the bonds.
2 26 c. Subject to the terms, conditions, and covenants
2 27 providing for the payment of the principal, redemption
2 28 premiums, if any, interest, and other terms, conditions,
2 29 covenants, and protective provisions safeguarding payment, not
2 30 inconsistent with this chapter and as determined by the trust
2 31 indenture, resolution, or other instrument authorizing their
2 32 issuance.
2 33 6. The bonds are securities in which public officers and
2 34 bodies of this state, political subdivisions of this state,
2 35 insurance companies and associations and other persons
3 1 carrying on an insurance business, banks, trust companies,
3 2 savings associations, savings and loan associations, and
3 3 investment companies, administrators, guardians, executors,
3 4 trustees, and other fiduciaries, and other persons authorized
3 5 to invest in bonds or other obligations of the state, may
3 6 properly and legally invest funds, including capital, in their
3 7 control or belonging to them.
3 8 7. Bonds must be authorized by a trust indenture,
3 9 resolution, or other instrument of the authority. However, a
3 10 trust indenture, resolution, or other instrument authorizing
3 11 the issuance of bonds may delegate to an officer of the issuer
3 12 the power to negotiate and fix the details of an issue of
3 13 bonds.
3 14 8. The trust indenture, resolution, or any other
3 15 instrument by which a pledge is created is not required to be
3 16 recorded or filed under the uniform commercial code to be
3 17 valid, binding, or effective.
3 18 9. Bonds issued under this section are declared to be
3 19 issued for an essential public and governmental purpose and
3 20 all bonds issued under this section shall be exempt from
3 21 taxation by the state of Iowa and the interest on the bonds
3 22 shall be exempt from the state income taxes and the state
3 23 inheritance and estate tax.
3 24 10. The authority shall cooperate with the college student
3 25 aid commission in the implementation of this section. The
3 26 authority shall not issue bonds unless authorized by the
3 27 college student aid commission.
3 28 Sec. 3. NEW SECTION. 261.130 DEFINITIONS.
3 29 As used in this division, unless the context otherwise
3 30 requires:
3 31 1. "Accredited higher education institution" means the
3 32 same as defined in section 261.92.
3 33 2. "Commission" means the college student aid commission.
3 34 3. "Community college" means the same as defined in
3 35 section 260C.2.
4 1 4. "Degree" means a baccalaureate degree from an Iowa
4 2 accredited higher education institution or an associate degree
4 3 from an Iowa community college.
4 4 5. "Employed" includes self-employment.
4 5 Sec. 4. NEW SECTION. 261.131 BETWEEN THE RIVERS AWARD
4 6 PILOT PROGRAM.
4 7 1. The commission shall establish a seven-year between the
4 8 rivers award pilot program to provide awards to students first
4 9 attending an Iowa accredited higher education institution or
4 10 an Iowa community college during the first four school years
4 11 after the first issuance of bonds by the Iowa finance
4 12 authority for the pilot program pursuant to section 16.190.
4 13 2. To be initially eligible for an award, the student must
4 14 be an Iowa resident attending the student's first year at an
4 15 Iowa accredited higher education institution or Iowa community
4 16 college, which school year must begin in the same calendar
4 17 year in which the student has graduated from an Iowa high
4 18 school, been honorably discharged from the armed forces of the
4 19 United States, or received a high school equivalency diploma.
4 20 To qualify for the award, the student must establish the
4 21 student's need for assistance.
4 22 3. The amount of an initial award to an eligible student
4 23 shall be equal to one thousand dollars for the first year. If
4 24 the student maintains ordinary progress toward graduation and
4 25 has at least a two point zero grade point average on a four
4 26 point zero scale or the equivalent during a school year, the
4 27 student may receive an additional award the following year
4 28 equal to two hundred fifty dollars more than the award the
4 29 student received for the previous year. The maximum number of
4 30 awards which a student may receive under the pilot program is
4 31 four if attending an Iowa accredited higher education
4 32 institution and two if attending an Iowa community college.
4 33 4. Payments pursuant to an award shall be allocated
4 34 equally among the semesters or quarters of the year upon
4 35 certification by the accredited higher education institution
5 1 or community college at which the student is in attendance.
5 2 If the student discontinues attendance before the end of any
5 3 term after the accredited higher education institution or
5 4 community college receives payment from the award, the entire
5 5 amount of any refund due that student, up to the amount of any
5 6 payments made to the higher education institution or community
5 7 college from the award, shall be paid by the higher education
5 8 institution or community college to the state.
5 9 Sec. 5. NEW SECTION. 261.132 ADMINISTRATION BY
5 10 COMMISSION – RULES.
5 11 The commission shall administer the between the rivers
5 12 award pilot program and shall do all of the following:
5 13 1. Provide award application forms and parents'
5 14 confidential statement forms.
5 15 2. Adopt rules and regulations for determining financial
5 16 need, defining tuition and mandatory fees, defining residence
5 17 for the purposes of this division, processing and approving
5 18 applications for tuition awards, and determining priority of
5 19 awards. The commission may provide for proration of funds if
5 20 the available funds are insufficient to pay all approved
5 21 awards. Such proration shall consider the financial needs of
5 22 the applicants. In determining who is a resident of Iowa, the
5 23 commission's rules shall be at least as restrictive as those
5 24 adopted by the board of regents.
5 25 3. Approve and make tuition awards.
5 26 4. Make an annual report to the governor and general
5 27 assembly, and evaluate the between the rivers award pilot
5 28 program for the period of the pilot program. The commission
5 29 may require an accredited higher education institution or
5 30 community college at which a student receiving an award is in
5 31 attendance to promptly furnish any information the commission
5 32 may request in connection with the pilot program.
5 33 Sec. 6. NEW SECTION. 261.133 APPLICATION FOR AWARDS.
5 34 Each applicant, in accordance with the rules of the
5 35 commission, shall:
6 1 1. Complete and file an application for a tuition award on
6 2 forms provided by the commission.
6 3 2. Be responsible for submission of a parents'
6 4 confidential statement on forms provided by the commission for
6 5 processing. The processed information shall be returned both
6 6 to the commission and to the educational institution in which
6 7 the applicant is enrolling.
6 8 3. Report promptly to the commission any information
6 9 requested.
6 10 4. File a new application and parents' confidential
6 11 statement annually on the basis of which the applicant's
6 12 eligibility for a renewed tuition award will be evaluated and
6 13 determined.
6 14 Sec. 7. NEW SECTION. 261.134 REPAYMENT OF AWARDS.
6 15 1. A student approved for an award under the between the
6 16 rivers award pilot program shall enter into a repayment
6 17 agreement with the commission before receiving the award. An
6 18 award shall only be required to be repaid with interest under
6 19 one of the following circumstances:
6 20 a. Failure of the award recipient to receive a degree.
6 21 Interest shall be computed beginning with the fourth month
6 22 following the student's leaving school.
6 23 b. Upon receiving a degree, failure of the award recipient
6 24 to be employed in Iowa for five consecutive calendar years
6 25 after receipt of the degree. Interest shall be computed
6 26 beginning with the fourth month following the receipt of the
6 27 degree or the cessation of employment in the state, whichever
6 28 is later. For purposes of this paragraph and subsection 3, an
6 29 individual is considered to be employed in a calendar year in
6 30 the state as follows:
6 31 (1) In the calendar year in which the degree is received,
6 32 the individual is employed in the state for more than one-half
6 33 of the individual's working days during the period beginning
6 34 with the date of receipt of the degree and ending December 31
6 35 of that calendar year.
7 1 (2) In a calendar year subsequent to the year in which the
7 2 degree was received, the individual is employed in the state
7 3 for more than one-half of the individual's working days during
7 4 the calendar year.
7 5 2. A repayment schedule shall be developed by the
7 6 commission that will allow the repayment of an award plus
7 7 interest over a period of time not to exceed five years. The
7 8 schedule shall provide for the deferment of any repayments and
7 9 interest by an individual who has received a degree during the
7 10 period the individual is serving in the armed forces of the
7 11 United States or is continuing studies for an advanced degree.
7 12 3. An individual described in subsection 1, paragraph "b",
7 13 who is employed in Iowa for less than five consecutive
7 14 calendar years shall receive a reduction in the total amount
7 15 of award repayments and interest equal to twenty percent per
7 16 calendar year the individual was employed in the state.
7 17 Sec. 8. NEW SECTION. 261.135 REVOLVING FUND.
7 18 There is created a between the rivers award revolving fund
7 19 in the state treasury. Moneys in the fund are separate from
7 20 the general fund of the state and shall not be considered part
7 21 of the general fund of the state. Notwithstanding section
7 22 12C.7, subsection 2, interest and earnings on moneys in the
7 23 between the rivers award revolving fund shall be credited to
7 24 the revolving fund. Moneys credited to the fund shall be the
7 25 net proceeds from the issuance of bonds pursuant to section
7 26 16.190, moneys appropriated to the fund, moneys contributed to
7 27 the fund by individuals and businesses, and any other moneys
7 28 directed to be deposited into the fund. The fund shall
7 29 consist of two accounts as follows:
7 30 1. AWARDS ACCOUNT. There is established an awards account
7 31 in the revolving fund. All moneys received from the net
7 32 proceeds from the issuance of bonds pursuant to section 16.190
7 33 shall be deposited into the awards account. The moneys in the
7 34 account are appropriated to the commission for purposes of
7 35 providing awards under the between the rivers award pilot
8 1 program. However, the commission may transfer moneys from
8 2 this account to the repayment account if it determines that
8 3 the amount in the repayment account will be insufficient to
8 4 pay principal and interest on the bonds issued for purposes of
8 5 the pilot program. Amounts received from the repayment of
8 6 awards shall be deposited into the awards account.
8 7 2. REPAYMENT ACCOUNT. There is established a repayment
8 8 account in the revolving fund. The repayment account shall
8 9 contain, but is not limited to, moneys received from
8 10 individuals and corporations, moneys transferred from the
8 11 awards account, moneys received as provided in section 8.57,
8 12 subsection 5, and other moneys the commission deposits into
8 13 the repayment account. Moneys in the repayment account are
8 14 appropriated to the commission and shall be used only for the
8 15 repayment of bonds issued pursuant to section 16.190 and shall
8 16 be pledged for that purpose. The commission shall not
8 17 authorize the first issuance of bonds until the repayment
8 18 account contains an amount at least equal to the interest
8 19 payments on the bonds for the first four years following the
8 20 issuance of the bonds.
8 21 Sec. 9. Section 422.7, Code Supplement 2001, is amended by
8 22 adding the following new subsection:
8 23 NEW SUBSECTION. 38. Subtract the amount of charitable
8 24 contributions, as defined in section 170(c) of the Internal
8 25 Revenue Code, made to the college student aid commission for
8 26 purposes of the between the rivers award pilot program
8 27 established in section 261.131.
8 28 Sec. 10. Section 422.9, subsection 2, Code Supplement
8 29 2001, is amended by adding the following new paragraph:
8 30 NEW PARAGRAPH. j. If the taxpayer has a deduction for
8 31 charitable contributions under section 170 of the Internal
8 32 Revenue Code, the taxpayer shall recompute for purposes of
8 33 this subsection the amount of the deduction under section 170
8 34 by excluding from the charitable contributions as defined in
8 35 section 170(c) of the Internal Revenue Code the amount
9 1 subtracted under section 422.7, subsection 38.
9 2 Sec. 11. NEW SECTION. 422.11F IOWA GRADUATE EMPLOYMENT
9 3 TAX CREDIT.
9 4 1. The taxes imposed under this division less the credits
9 5 allowed under sections 422.12 and 422.12B shall be reduced by
9 6 an Iowa graduate employment tax credit. To be eligible for
9 7 the credit, the taxpayer or the taxpayer's spouse must have
9 8 graduated during the period beginning with the calendar year
9 9 following the calendar year designated by the college student
9 10 aid commission as the first year of the between the rivers
9 11 award pilot program and ending three calendar years later from
9 12 an Iowa accredited higher education institution with a
9 13 baccalaureate degree or an Iowa community college with an
9 14 associate degree, and at the time of graduation must be a
9 15 nonresident or ineligible for an award under the between the
9 16 rivers award pilot program. To receive the credit, the
9 17 taxpayer or taxpayer's spouse must have been employed within
9 18 this state for more than one-half of the taxpayer's or the
9 19 taxpayer's spouse's working days during the tax year and the
9 20 tax year must begin during the period of eligibility.
9 21 2. The amount of the tax credit is six hundred dollars for
9 22 a baccalaureate degree earned at an Iowa accredited higher
9 23 education institution and two hundred dollars for an associate
9 24 degree earned at an Iowa community college. A taxpayer
9 25 eligible to receive the tax credit may receive the tax credit
9 26 for any tax year beginning during the period of eligibility.
9 27 Married taxpayers filing joint returns, if both spouses
9 28 qualify to receive the tax credit, are each entitled to the
9 29 tax credit. Any tax credit in excess of the tax liability is
9 30 nonrefundable.
9 31 3. For purposes of this section:
9 32 a. "Accredited higher education institution" means the
9 33 same as defined in section 261.92.
9 34 b. "Between the rivers award pilot program" means the
9 35 award pilot program established by the college student aid
10 1 commission pursuant to sections 261.130 through 261.135.
10 2 c. "Community college" means the same as defined in
10 3 section 260C.2.
10 4 d. "Employed" includes self-employment.
10 5 e. "Period of eligibility" means the ten-calendar-year
10 6 period beginning with the calendar year in which the taxpayer
10 7 or the taxpayer's spouse earned the baccalaureate degree or
10 8 associate degree.
10 9 Sec. 12. Section 422.35, Code Supplement 2001, is amended
10 10 by adding the following new subsection:
10 11 NEW SUBSECTION. 19. Subtract, to the extent not already
10 12 excluded, the amount of charitable contributions, as defined
10 13 in section 170(c) of the Internal Revenue Code, made to the
10 14 college student aid commission for purposes of the between the
10 15 rivers award pilot program established in section 261.131.
10 16 Sec. 13. EFFECTIVE AND APPLICABILITY DATES. This Act,
10 17 being deemed of immediate importance, takes effect upon
10 18 enactment. Sections 9, 10, and 12 of this Act, amending
10 19 sections 422.7, 422.9, and 422.35, apply retroactively to
10 20 January 1, 2002, for tax years beginning on or after that
10 21 date. Section 11 of this Act, enacting new section 422.11F,
10 22 applies to tax years beginning on or after January 1, 2003.
10 23 EXPLANATION
10 24 This bill establishes a pilot program for providing awards
10 25 to attend a community college, college, or university in this
10 26 state. To qualify for an award, a student must begin college
10 27 within the same calendar year following graduation from a high
10 28 school in the state, be honorably discharged from the armed
10 29 forces of the United States, or have received an Iowa high
10 30 school equivalency degree and be in need of financial
10 31 assistance. The amount of the award is $1,000 and a student
10 32 could receive awards for additional years if the student
10 33 maintains a 2.0 grade point average and is making progress
10 34 toward graduation. The amount of the additional awards would
10 35 be $250 greater than the previous year's award. The student
11 1 may receive awards for a maximum of two years for a community
11 2 college and four years for a four-year college or university.
11 3 If a student who has received an award does not graduate, or
11 4 upon graduation is not employed in Iowa for five years, the
11 5 student must repay the award plus interest over five years.
11 6 However, if the graduate is employed in Iowa for less than
11 7 five consecutive years, the graduate's repayment is reduced by
11 8 20 percent for each year the graduate is employed in the
11 9 state.
11 10 Funding for the program would be provided from the issuance
11 11 of bonds by the Iowa finance authority. Repayment of the
11 12 bonds would be from moneys deposited in the state general fund
11 13 from gambling revenues, up to $15 million. Not more than $150
11 14 million in bonds may be issued. However, before any bonds may
11 15 be issued, the first four years' interest on the bonds must be
11 16 accumulated from contributions from individuals and
11 17 businesses. These contributions are deductible for state
11 18 individual and corporate income tax.
11 19 The bill also provides an income tax credit for nonresident
11 20 individuals and individuals not qualifying for the award pilot
11 21 program who have received a baccalaureate degree from an Iowa
11 22 state or private college or university or an associate degree
11 23 from an Iowa community college and who are employed or self-
11 24 employed in Iowa for more than one-half of the tax year. The
11 25 degrees must be received during a four-year period beginning
11 26 with the calendar year after the award pilot program begins
11 27 and the following three calendar years. The amount of credit
11 28 equals $600 for a baccalaureate degree and $200 for an
11 29 associate degree. The credit is available for up to 10 years.
11 30 The credit is nonrefundable. If both spouses qualify for the
11 31 credit, they may both claim the credit even if they file
11 32 jointly.
11 33 The bill takes effect upon enactment and the tax provisions
11 34 have applicability date provisions.
11 35 LSB 5583HT 79
12 1 mg/cls/14
Text: HF02579 Text: HF02581 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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