Text: HSB00196                          Text: HSB00198
Text: HSB00100 - HSB00199               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 197

Bill Text

PAG LIN
  1  1    Section 1.  Section 7C.3, Code 2001, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  8A.  "Qualified multifamily bond" means a
  1  4 qualified residential rental project bond as defined in
  1  5 section 142(d) of the Internal Revenue Code.
  1  6    Sec. 2.  Section 7C.4A, subsections 5, 6, and 7, Code 2001,
  1  7 are amended to read as follows:
  1  8    5.  Eighteen percent of the state ceiling shall be
  1  9 allocated to bonds issued by political subdivisions to finance
  1 10 a qualified industry or industries for the manufacturing,
  1 11 processing, or assembly of agricultural or manufactured
  1 12 products even though the processed products may require
  1 13 further treatment before delivery to the ultimate consumer.
  1 14 The state ceiling in this subsection shall be allocated in
  1 15 accordance with rules adopted by the department of economic
  1 16 development providing priority criteria for bonds for certain
  1 17 projects for which a priority allocation would be in the best
  1 18 interests of the state, in accordance with goals, objectives,
  1 19 and principles established by the department of economic
  1 20 development.  However, in order to maximize the full use of
  1 21 the state ceiling under this subsection and subsection 7, at
  1 22 any time after October 1 of each year the director of the
  1 23 department of economic development may determine that a lesser
  1 24 amount needs to be allocated under this subsection and on that
  1 25 date the determined lesser amount shall be the amount
  1 26 allocated with the excess being allocated under subsection 7.
  1 27    6.  During the period of January 1 through June 30 March 1,
  1 28 three percent of the state ceiling shall be reserved for
  1 29 private activity bonds issued by political subdivisions, the
  1 30 proceeds of which are used by the issuing political
  1 31 subdivisions to finance projects owned and used by the
  1 32 political subdivisions which require an allocation under
  1 33 section 146 of the Internal Revenue Code.  The state ceiling
  1 34 in this subsection shall be allocated on the basis of the
  1 35 chronological order of receipt by the governor's designee of
  2  1 the applications described in section 7C.6 with respect to a
  2  2 definitive issue of bonds, as determined by the day, hour, and
  2  3 minute time-stamped on the application immediately upon
  2  4 receipt by the governor's designee.  Applications may be filed
  2  5 at any time before or after January 1 of the foregoing period.
  2  6    7.  a.  The amount of the state ceiling which is not
  2  7 otherwise allocated under subsections 1 through 5, and after
  2  8 June 30 March 1, the amount of the state ceiling reserved
  2  9 under subsection 6 and not allocated, shall be allocated to
  2 10 all bonds requiring an allocation under section 146 of the
  2 11 Internal Revenue Code without priority for any type of bond
  2 12 over another, except as otherwise provided in sections 7C.5
  2 13 and 7C.11 including, without limitation, qualified multifamily
  2 14 bonds, in accordance with rules adopted by the governor's
  2 15 designee to provide priority criteria for bonds for certain
  2 16 projects for which a priority allocation would be in the best
  2 17 interests of the state in accordance with objectives and
  2 18 criteria established by the governor's designee.
  2 19    b. 8.  The population of the state shall be determined in
  2 20 accordance with the Internal Revenue Code.
  2 21    Sec. 3.  Section 7C.7, Code 2001, is amended to read as
  2 22 follows:
  2 23    7C.7  CERTIFICATION OF ALLOCATION.
  2 24    Upon the receipt of a completed application pursuant to
  2 25 section 7C.6, the governor's designee shall, subject to the
  2 26 priority criteria relating to allocation of the state ceiling
  2 27 referred to in section 7C.4A, subsections 5 and 7, promptly
  2 28 certify to the political subdivision the amount of the state
  2 29 ceiling allocated to the bonds for the purpose or project with
  2 30 respect to which the application was submitted.  The
  2 31 allocation shall remain valid for thirty sixty days from the
  2 32 date the allocation was certified, subject to the following
  2 33 conditions:
  2 34    1.  If the bonds are issued and delivered for the purpose
  2 35 or project within the thirty-day period or the forty-five day
  3  1 extension period time periods provided in subsection 2 this
  3  2 section, the political subdivision or its representative shall
  3  3 within ten days following the issuance and delivery of the
  3  4 bonds or not later than June 30 of that year, if the bonds
  3  5 were issued and delivered on or before that date, file with
  3  6 the governor's designee, in the form or manner the governor's
  3  7 designee may prescribe, a notification of the date of issuance
  3  8 and the delivery of the bonds, and the actual principal amount
  3  9 of bonds issued and delivered.  The filing of the notification
  3 10 shall be done by actual delivery or by posting in a United
  3 11 States post office depository with correct first class postage
  3 12 paid.  If the actual principal amount of bonds issued and
  3 13 delivered is less than the amount of the allocation, the
  3 14 amount of the allocation is automatically reduced to the
  3 15 actual principal amount of the bonds issued and delivered.
  3 16    2.  If the political subdivision does not reasonably expect
  3 17 to issue and deliver the bonds within the thirty-day sixty-day
  3 18 period and evidence of an executed, valid and binding
  3 19 agreement to purchase the bonds is obtained from an entity
  3 20 with the legal ability to purchase and this agreement is filed
  3 21 with the governor's designee, and the political subdivision
  3 22 files a certification with the governor's designee, based on
  3 23 information furnished by the sponsor of the project for which
  3 24 the bonds are to be issued, that it reasonably expects to
  3 25 issue and deliver the bonds within the next sixty days
  3 26 thereafter, then the thirty-day sixty-day allocation period is
  3 27 automatically extended for an additional forty-five sixty
  3 28 days.  The allocation period shall not be extended beyond that
  3 29 additional forty-five days.
  3 30    3.  The allocation is no longer valid unless the bonds are
  3 31 issued and delivered prior to December 24 or in the case of
  3 32 bonds described in section 7C.11 are issued and delivered
  3 33 prior to December 31 of the calendar year in which the
  3 34 allocation is certified, except as provided in section 7C.8.
  3 35    Sec. 4.  Section 7C.5, Code 2001, is repealed.
  4  1    Sec. 5.  2000 Iowa Acts, chapter 1166, section 8, is
  4  2 repealed.  
  4  3                           EXPLANATION
  4  4    This bill amends the private activity bond allocation Act
  4  5 in Code chapter 7C which allows for the allocation of the
  4  6 state ceiling for bonds which are subject to section 146 of
  4  7 the Internal Revenue Code and may be issued by all political
  4  8 subdivisions.
  4  9    The bill adds qualified multifamily bonds as an additional
  4 10 purpose for which the Iowa finance authority may use its
  4 11 allocation of the state ceiling.
  4 12    The bill provides a procedure for allowing the director of
  4 13 the department of economic development to release a portion of
  4 14 the state ceiling allocation for bonds issued by political
  4 15 subdivisions to finance a qualified industry for the
  4 16 manufacturing, processing, or assembly of agricultural or
  4 17 manufactured products.  The bill provides for a priority
  4 18 criteria method for allocating the state ceiling for these
  4 19 bonds.
  4 20    The bill changes the time period and specifies an
  4 21 application and allocation method for the portion of the state
  4 22 ceiling reserved for private activity bonds issued by
  4 23 political subdivisions, the proceeds of which are used by the
  4 24 issuing political subdivision for qualified projects owned and
  4 25 directly used by the political subdivision.
  4 26    The bill provides for a priority criteria allocation method
  4 27 for the amount of the state ceiling which is not otherwise
  4 28 allocated.
  4 29    The bill amends the time periods for which allocations
  4 30 remain valid and certified.
  4 31    The bill repeals Code section 7C.5 relating to a
  4 32 chronological method of allocating the state ceiling for
  4 33 certain types of bonds.
  4 34    The bill repeals a section of 2000 Iowa Acts, chapter 1166,
  4 35 which provides that for the calendar year beginning January 1,
  5  1 2001, applications for allocation of the state ceiling shall
  5  2 not be approved prior to March 1.  
  5  3 LSB 1241DP 79
  5  4 tm/cls/14.2
     

Text: HSB00196                          Text: HSB00198
Text: HSB00100 - HSB00199               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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