Text: HF02438 Text: HF02440 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I – REGULATORY EFFICIENCY COMMISSION 1 2 Section 1. REGULATORY EFFICIENCY COMMISSION. 1 3 1. A regulatory efficiency commission is established for 1 4 purposes of identifying unneeded regulations, fines, and fees 1 5 that hinder business development. The commission shall also 1 6 identify methods for streamlining access to regulatory 1 7 information. 1 8 2. The commission shall consist of seven voting members 1 9 appointed by the governor and four ex officio members. 1 10 a. The seven voting members appointed by the governor are 1 11 subject to the requirements of sections 69.16, 69.16A, and 1 12 69.19. The seven members shall consist of the following: 1 13 (1) Two members shall be economic development 1 14 representatives from two different chambers of commerce. One 1 15 shall be from a metropolitan area with more than fifty 1 16 thousand people and one shall be from a metropolitan area with 1 17 fifty thousand people or less. 1 18 (2) Two members representing agricultural interests. 1 19 (3) One member representing the Iowa association of 1 20 business and industry. 1 21 (4) Two members representing commercial-based and 1 22 manufacturing-based businesses. 1 23 b. The four ex officio members shall be members of the 1 24 general assembly. Two members shall be from the senate and 1 25 two members shall be from the house of representatives, with 1 26 not more than one member from each chamber being from the same 1 27 political party. The two senators shall be designated by the 1 28 president of the senate after consultation with the majority 1 29 and minority leaders of the senate. The two representatives 1 30 shall be designated by the speaker of the house of 1 31 representatives after consultation with the majority and 1 32 minority leaders of the house of representatives. Legislative 1 33 members shall serve in an ex officio, nonvoting capacity. 1 34 3. Meetings of the commission are subject to the 1 35 provisions of chapter 21. 2 1 4. By January 10, 2005, the commission shall submit a 2 2 written report to the governor and the general assembly. The 2 3 report shall include the findings and legislative 2 4 recommendations of the commission. The report shall be 2 5 distributed by the secretary of the senate and the chief clerk 2 6 of the house of representatives to the chairpersons and 2 7 members of the administrative rules review committee and the 2 8 economic growth committees in the senate and the house of 2 9 representatives. 2 10 DIVISION II – PARTNERSHIP COMMISSION 2 11 Sec. 2. PARTNERSHIP COMMISSION. 2 12 1. A partnership commission is established for purposes of 2 13 identifying unnecessary public mandates for elimination and 2 14 providing recommendations designed to encourage city and 2 15 county governments to share services. 2 16 2. The commission shall consist of seven voting members 2 17 appointed by the governor and four ex officio members. 2 18 a. The seven voting members appointed by the governor are 2 19 subject to the requirements of sections 69.16, 69.16A, and 2 20 69.19. The seven members shall consist of representatives 2 21 from various sized cities and counties. 2 22 b. The four ex officio members shall be members of the 2 23 general assembly. Two members shall be from the senate and 2 24 two members shall be from the house of representatives, with 2 25 not more than one member from each chamber being from the same 2 26 political party. The two senators shall be designated by the 2 27 president of the senate after consultation with the majority 2 28 and minority leaders of the senate. The two representatives 2 29 shall be designated by the speaker of the house of 2 30 representatives after consultation with the majority and 2 31 minority leaders of the house of representatives. Legislative 2 32 members shall serve in an ex officio, nonvoting capacity. 2 33 3. Meetings of the commission are subject to the 2 34 provisions of chapter 21. 2 35 4. By January 10, 2005, the commission shall submit a 3 1 written report to the governor and the general assembly. The 3 2 report shall include the findings and legislative 3 3 recommendations of the commission. The report shall be 3 4 distributed by the secretary of the senate and the chief clerk 3 5 of the house of representatives to the chairpersons and 3 6 members of the administrative rules review committee and the 3 7 state government committees in the senate and the house of 3 8 representatives. 3 9 DIVISION III – REGIONAL ECONOMIC DEVELOPMENT – 3 10 APPROPRIATIONS 3 11 Sec. 3. NEW SECTION. 15E.231 ECONOMIC DEVELOPMENT 3 12 REGIONS. 3 13 1. In order for an economic development region to receive 3 14 moneys from the grow Iowa values fund created in section 3 15 15G.108, the organization of an economic development region 3 16 must be approved by the grow Iowa values board established in 3 17 section 15G.102. The board shall approve an economic 3 18 development region that meets the following criteria: 3 19 a. The region consists of not less than three contiguous 3 20 counties. Upon the recommendation of the director of the 3 21 department of economic development, this paragraph may be 3 22 waived by the board. 3 23 b. The region establishes a single, focused economic 3 24 development effort, approved by the board, that shall include 3 25 the development of a regional development plan and regional 3 26 marketing strategies. Regional marketing strategies must be 3 27 focused on marketing the region collectively. 3 28 2. An approved economic development region may create an 3 29 economic development region revolving fund as provided in 3 30 section 15E.232. 3 31 Sec. 4. NEW SECTION. 15E.232 ECONOMIC DEVELOPMENT REGION 3 32 REVOLVING FUNDS – TAX CREDITS. 3 33 1. An economic development region approved pursuant to 3 34 section 15E.231 may create an economic development region 3 35 revolving fund. 4 1 2. a. A nongovernmental entity making a contribution to 4 2 an economic development region revolving fund at any time 4 3 prior to July 1, 2009, may claim a tax credit equal to twenty 4 4 percent of the amount contributed to the revolving fund. The 4 5 tax credit shall be allowed against taxes imposed in chapter 4 6 422, divisions II, III, and V, and in chapter 432, and against 4 7 the moneys and credits tax imposed in section 533.24. An 4 8 individual may claim under this subsection the tax credit of a 4 9 partnership, limited liability company, S corporation, estate, 4 10 or trust electing to have income taxed directly to the 4 11 individual. The amount claimed by the individual shall be 4 12 based upon the pro rata share of the individual's earnings 4 13 from the partnership, limited liability company, S 4 14 corporation, estate, or trust. Any tax credit in excess of 4 15 the taxpayer's liability for the tax year may be credited to 4 16 the tax liability for the following seven years or until 4 17 depleted, whichever occurs first. A tax credit shall not be 4 18 carried back to a tax year prior to the tax year in which the 4 19 taxpayer redeems the tax credit. A tax credit under this 4 20 section is not transferable. 4 21 b. The aggregate amount of tax credits authorized pursuant 4 22 to this subsection shall not total more than twenty million 4 23 dollars. The total amount of tax credits authorized during a 4 24 fiscal year shall not exceed four million dollars plus any 4 25 unused tax credits carried over from previous years. Any tax 4 26 credits which remain unused for a fiscal year may be carried 4 27 forward to the succeeding fiscal year. The maximum amount of 4 28 tax credits that may be authorized in a fiscal year for 4 29 contributions made to a specific economic development region 4 30 revolving fund is equal to four million dollars plus any 4 31 unused tax credits carried over from previous years divided by 4 32 the number of economic development region revolving funds 4 33 existing in the state. 4 34 c. The department of economic development shall administer 4 35 the authorization of tax credits under this section and shall, 5 1 in cooperation with the department of revenue and finance, 5 2 adopt rules pursuant to chapter 17A necessary for the 5 3 administration of this section. 5 4 3. An approved economic development region may apply for 5 5 financial assistance from the Iowa values fund to assist with 5 6 physical infrastructure needs related to a specific business 5 7 partner. In order to receive financial assistance pursuant to 5 8 this subsection, the economic development region must 5 9 demonstrate all of the following: 5 10 a. The ability to provide matching moneys on a one to one 5 11 basis. 5 12 b. The commitment of the specific business partner. 5 13 c. That all other funding alternatives have been 5 14 exhausted. 5 15 4. An approved economic development region may apply for 5 16 financial assistance from the Iowa values fund to assist an 5 17 existing business located in the economic development region 5 18 impacted by business consolidation actions. Business 5 19 consolidation actions include a substantial or total closure 5 20 of an existing business due to consolidating the existing 5 21 business out of state. In order to receive financial 5 22 assistance pursuant to this subsection, the economic 5 23 development region must demonstrate the ability to provide 5 24 matching moneys on a one-to-one basis. 5 25 5. An approved economic development region may apply for 5 26 financial assistance to implement economic development 5 27 initiatives unique to the region. In order to receive 5 28 financial assistance pursuant to this subsection, the economic 5 29 development region must demonstrate the ability to provide 5 30 matching moneys on a one-to-one basis. 5 31 6. An approved economic development region may apply for 5 32 financial assistance to implement innovative initiatives that 5 33 do not qualify for assistance under subsection 5. 5 34 7. The board may establish and administer a regional 5 35 economic development revenue sharing pilot project for one or 6 1 more regions. Not more than three pilot projects shall be 6 2 established. The department of economic development shall 6 3 provide technical assistance to the regions participating in a 6 4 pilot project. 6 5 8. Financial assistance under subsections 3, 4, 5, and 6 6 6 and section 15E.233 shall be limited to a total of twenty 6 7 million dollars. 6 8 Sec. 5. NEW SECTION. 15E.233 ECONOMICALLY ISOLATED 6 9 AREAS. 6 10 1. An approved economic development region may apply to 6 11 the Iowa values board for approval to be designated as an 6 12 economically isolated area. In order to be considered an 6 13 economically isolated area, the region must have at least one 6 14 county that meets all of the following criteria: 6 15 a. A majority of the land area of the county is located at 6 16 least forty miles away from a major commercial area, as 6 17 determined by the board. Major commercial areas include all 6 18 of the following: 6 19 (1) Burlington. 6 20 (2) Carroll. 6 21 (3) Cedar Rapids. 6 22 (4) Clinton. 6 23 (5) Council Bluffs. 6 24 (6) Davenport. 6 25 (7) Des Moines. 6 26 (8) Dubuque. 6 27 (9) Fort Dodge. 6 28 (10) Iowa City. 6 29 (11) Marshalltown. 6 30 (12) Mason City. 6 31 (13) Ottumwa. 6 32 (14) Sioux City. 6 33 (15) Spencer. 6 34 (16) Storm Lake. 6 35 (17) Waterloo. 7 1 b. The county has at least one of the following: 7 2 (1) Per capita income that ranks in the lowest twenty-five 7 3 counties in the state based on the 2000 census. 7 4 (2) An annualized average weekly wage for employees in 7 5 private business that ranks in the lowest twenty-five counties 7 6 in the state in calendar year 2000. 7 7 2. An approved economically isolated area may apply to the 7 8 department of economic development for up to seven hundred 7 9 fifty thousand dollars over a five-year period for purposes of 7 10 economic-development-related marketing assistance for the 7 11 area. In order to receive financial assistance pursuant to 7 12 this subsection, the economic development region must 7 13 demonstrate the ability to provide matching moneys on a one- 7 14 to-one basis. 7 15 Sec. 6. NEW SECTION. 422.11J ECONOMIC DEVELOPMENT REGION 7 16 REVOLVING FUND TAX CREDIT. 7 17 The taxes imposed under this division, less the credits 7 18 allowed under sections 422.12 and 422.12B, shall be reduced by 7 19 an economic development region revolving fund contribution tax 7 20 credit authorized pursuant to section 15E.232. 7 21 Sec. 7. Section 422.33, Code Supplement 2003, is amended 7 22 by adding the following new subsection: 7 23 NEW SUBSECTION. 16. The taxes imposed under this division 7 24 shall be reduced by an economic development region revolving 7 25 fund contribution tax credit authorized pursuant to section 7 26 15E.232. 7 27 Sec. 8. Section 422.60, Code Supplement 2003, is amended 7 28 by adding the following new subsection: 7 29 NEW SUBSECTION. 8. The taxes imposed under this division 7 30 shall be reduced by an economic development region revolving 7 31 fund contribution tax credit authorized pursuant to section 7 32 15E.232. 7 33 Sec. 9. NEW SECTION. 432.12E ECONOMIC DEVELOPMENT REGION 7 34 REVOLVING FUND CONTRIBUTION TAX CREDITS. 7 35 The tax imposed under this chapter shall be reduced by an 8 1 economic development region tax credit authorized pursuant to 8 2 section 15E.232. 8 3 Sec. 10. Section 533.24, Code Supplement 2003, is amended 8 4 by adding the following new subsection: 8 5 NEW SUBSECTION. 6. The moneys and credits tax imposed 8 6 under this section shall be reduced by an economic development 8 7 region revolving fund contribution tax credit authorized 8 8 pursuant to section 15E.232. 8 9 Sec. 11. ECONOMIC DEVELOPMENT REGION FINANCIAL ASSISTANCE 8 10 APPROPRIATION. 8 11 1. There is appropriated from the grow Iowa values fund 8 12 created in section 15G.108 to the department of economic 8 13 development for the fiscal year beginning July 1, 2004, and 8 14 ending June 30, 2005, the following amount, or so much thereof 8 15 as is necessary, to be used for the purpose designated: 8 16 For providing financial assistance under section 15E.232, 8 17 subsections 3, 4, 5, and 6 and under section 15E.233: 8 18 .................................................. $ 20,000,000 8 19 2. Notwithstanding section 8.33, moneys that remain 8 20 unexpended at the end of a fiscal year shall not revert to any 8 21 fund but shall remain available for expenditure for the 8 22 designated purposes during the succeeding fiscal year. 8 23 Sec. 12. ECONOMIC DEVELOPMENT REGION REVOLVING FUND 8 24 CONTRIBUTION TAX CREDITS APPROPRIATION. 8 25 1. There is appropriated from the grow Iowa values fund 8 26 created in section 15G.108 to the general fund of the state, 8 27 for the fiscal period beginning July 1, 2004, and ending June 8 28 30, 2008, the following amounts, or so much thereof as is 8 29 necessary, to be used for the purpose designated: 8 30 For payment of tax credits approved pursuant to section 8 31 15E.232: 8 32 FY 2004-2005 ..................................... $ 4,000,000 8 33 FY 2005-2006 ..................................... $ 4,000,000 8 34 FY 2006-2007 ..................................... $ 4,000,000 8 35 FY 2007-2008 ..................................... $ 4,000,000 9 1 FY 2008-2009 ..................................... $ 4,000,000 9 2 2. Notwithstanding section 8.33, moneys that remain 9 3 unexpended at the end of a fiscal year shall not revert to any 9 4 fund but shall remain available for expenditure for the 9 5 designated purposes during the succeeding fiscal year. 9 6 3. Any moneys appropriated under this section that remain 9 7 unexpended on June 30, 2009, are appropriated from the general 9 8 fund of the state to the department of economic development 9 9 for the fiscal year beginning July 1, 2009, and ending June 9 10 30, 2010, to be used for providing financial assistance under 9 11 section 15E.232, subsections 3, 4, 5, and 6. 9 12 Sec. 13. RETROACTIVE APPLICABILITY. The section of this 9 13 Act enacting section 15E.232, relating to the economic 9 14 development region revolving fund contribution tax credit, is 9 15 retroactively applicable to January 1, 2004, and is applicable 9 16 on and after that date. 9 17 DIVISION IV – APPROPRIATIONS 9 18 Sec. 14. Section 404A.4, subsection 4, Code Supplement 9 19 2003, is amended to read as follows: 9 20 4. The total amount of tax credits that may be approved 9 21 for a fiscal year under this chapter shall not exceed two 9 22 million four hundred thousand dollars. For the fiscalyears9 23beginning July 1, 2005, andyear beginning July 1, 2004, an 9 24 additional one million five hundred thousand dollars of tax 9 25 credits may be approved for purposes of projects located in 9 26 cultural and entertainment districts certified pursuant to 9 27 section 303.3B. For the fiscal year beginning July 1, 2005, 9 28 an additional two million dollars of tax credits may be 9 29 approved for purposes of projects located in cultural and 9 30 entertainment districts certified pursuant to section 303.3B. 9 31 For the fiscal year beginning July 1, 2006, an additional five 9 32 hundred thousand dollars of tax credits may be approvedeach9 33fiscal yearfor purposes of projects located in cultural and 9 34 entertainment districts certified pursuant to section 303.3B. 9 35 Any of the additional tax credits allocated for projects 10 1 located in certified cultural and entertainment districts that 10 2 are not approved during a fiscal year may be carried over to 10 3 the succeeding fiscal year. Tax credit certificates shall be 10 4 issued on the basis of the earliest awarding of certifications 10 5 of completion as provided in subsection 1. The departments of 10 6 economic development and revenue shall each adopt rules to 10 7 jointly administer this subsection and shall provide by rule 10 8 for the method to be used to determine for which fiscal year 10 9 the tax credits are approved. 10 10 Sec. 15. REHABILITATION PROJECT TAX CREDITS APPROPRIATION. 10 11 1. There is appropriated from the grow Iowa values fund to 10 12 the general fund of the state for each fiscal year of the 10 13 fiscal period beginning July 1, 2004, and ending June 30, 10 14 2006, the following amounts, or so much thereof as is 10 15 necessary, to be used for the purpose designated: 10 16 For payment of tax credits approved pursuant to section 10 17 404A.4 for projects located in certified cultural and 10 18 entertainment districts: 10 19 FY 2004-2005 ..................................... $ 1,500,000 10 20 FY 2005-2006 ..................................... $ 1,500,000 10 21 2. Notwithstanding section 8.33, moneys that remain 10 22 unexpended at the end of a fiscal year shall not revert to any 10 23 fund but shall remain available for expenditure for the 10 24 designated purposes during the succeeding fiscal year. 10 25 Sec. 16. COMMUNITY ATTRACTION AND TOURISM PROGRAM. 10 26 1. There is appropriated from the grow Iowa values fund to 10 27 the office of the treasurer of state for each fiscal year of 10 28 the fiscal period beginning July 1, 2004, and ending June 30, 10 29 2007, the following amounts, or so much thereof as is 10 30 necessary, to be used for the purpose designated: 10 31 For deposit in the community attraction and tourism fund: 10 32 FY 2004-2005 ..................................... $ 15,000,000 10 33 FY 2005-2006 ..................................... $ 15,000,000 10 34 FY 2006-2007 ..................................... $ 15,000,000 10 35 2. Notwithstanding section 8.33, moneys that remain 11 1 unexpended at the end of a fiscal year shall not revert to any 11 2 fund but shall remain available for expenditure for the 11 3 designated purposes during the succeeding fiscal year. 11 4 Sec. 17. STATE PARKS. 11 5 1. There is appropriated from the grow Iowa values fund to 11 6 the grow Iowa values board for each fiscal year of the fiscal 11 7 period beginning July 1, 2004, and ending June 30, 2006, the 11 8 following amounts, or so much thereof as is necessary, to be 11 9 used for the purpose designated: 11 10 For the purpose of providing financial assistance for 11 11 projects in targeted state parks and destination parks: 11 12 FY 2004-2005 ..................................... $ 3,000,000 11 13 FY 2005-2006 ..................................... $ 3,000,000 11 14 2. Notwithstanding section 8.33, moneys that remain 11 15 unexpended at the end of a fiscal year shall not revert to any 11 16 fund but shall remain available for expenditure for the 11 17 designated purposes during the succeeding fiscal year. 11 18 Sec. 18. IOWA CULTURAL TRUST FUND. 11 19 1. There is appropriated from the grow Iowa values fund to 11 20 the office of the treasurer of state for each fiscal year of 11 21 the fiscal period beginning July 1, 2004, and ending June 30, 11 22 2006, the following amounts, or so much thereof as is 11 23 necessary, to be used for the purpose designated: 11 24 For deposit in the Iowa cultural trust fund created in 11 25 section 303A.4: 11 26 FY 2004-2005 ..................................... $ 2,000,000 11 27 FY 2005-2006 ..................................... $ 2,000,000 11 28 2. Notwithstanding section 8.33, moneys that remain 11 29 unexpended at the end of a fiscal year shall not revert to any 11 30 fund but shall remain available for expenditure for the 11 31 designated purposes during the succeeding fiscal year. 11 32 DIVISION V – GROW IOWA VALUES FUND FUNDING 11 33 Sec. 19. Section 8.57, subsection 5, paragraph e, Code 11 34 Supplement 2003, is amended to read as follows: 11 35 e. Notwithstanding provisions to the contrary in sections 12 1 99D.17 and 99F.11, for the fiscal year beginning July 1,200012 2 2003, andfor each fiscal year thereafterending June 30, 12 3 2004, not more than a total of sixty million dollars shall be 12 4 deposited in the general fund of the state inanythe fiscal 12 5 year pursuant to sections 99D.17 and 99F.11; for the fiscal 12 6 period beginning July 1, 2004, and ending June 30, 2030, not 12 7 more than a total of thirty-eight million three hundred 12 8 thousand dollars of the moneys directed to be deposited in the 12 9 general fund of the state in a fiscal year pursuant to 12 10 sections 99D.17 and 99F.11 shall be deposited in the grow Iowa 12 11 values fund created in section 15G.108 in any fiscal year, and 12 12 not more than a total of twenty-one million seven hundred 12 13 thousand dollars shall be deposited in the general fund in any 12 14 fiscal year; and for the fiscal year beginning July 1, 2030, 12 15 and for each fiscal year thereafter, not more than a total of 12 16 sixty million dollars shall be deposited in the general fund 12 17 of the state in any fiscal year pursuant to sections 99D.17 12 18 and 99F.11. The next fifteen million dollars of the moneys 12 19 directed to be deposited in the general fund of the state in a 12 20 fiscal year pursuant to sections 99D.17 and 99F.11 shall be 12 21 deposited in the vision Iowa fund created in section 12.72 for 12 22 the fiscal year beginning July 1, 2000, and for each fiscal 12 23 year through the fiscal year beginning July 1, 2019. The next 12 24 five million dollars of the moneys directed to be deposited in 12 25 the general fund of the state in a fiscal year pursuant to 12 26 sections 99D.17 and 99F.11 shall be deposited in the school 12 27 infrastructure fund created in section 12.82 for the fiscal 12 28 year beginning July 1, 2000, and for each fiscal year 12 29 thereafter until the principal and interest on all bonds 12 30 issued by the treasurer of state pursuant to section 12.81 are 12 31 paid, as determined by the treasurer of state. The total 12 32 moneys in excess of the moneys deposited in the general fund 12 33 of the state, the grow Iowa values fund, the vision Iowa fund, 12 34 and the school infrastructure fund in a fiscal year shall be 12 35 deposited in the rebuild Iowa infrastructure fund and shall be 13 1 used as provided in this section, notwithstanding section 13 2 8.60. 13 3 If the total amount of moneys directed to be deposited in 13 4 the general fund of the state under sections 99D.17 and 99F.11 13 5 in a fiscal year is less than the total amount of moneys 13 6 directed to be deposited in the grow Iowa values fund, the 13 7 vision Iowa fund, and the school infrastructure fund in the 13 8 fiscal year pursuant to this paragraph "e", the difference 13 9 shall be paid from lottery revenues in the manner provided in 13 10 section 99G.39, subsection 3. 13 11 Sec. 20. NEW SECTION. 12.91 GENERAL AND SPECIFIC BONDING 13 12 POWERS. 13 13 1. The treasurer of state may issue bonds for the purpose 13 14 of funding the grow Iowa values fund created in section 13 15 15G.108. The treasurer of state shall have all of the powers 13 16 which are necessary to issue and secure bonds and carry out 13 17 the purposes of the fund. The treasurer of state may issue 13 18 bonds in principal amounts which are necessary to provide 13 19 sufficient funds for the grow Iowa values fund, the payment of 13 20 interest on the bonds, the establishment of reserves to secure 13 21 the bonds, the costs of issuance of the bonds, other 13 22 expenditures of the treasurer of state incident to and 13 23 necessary or convenient to carry out the bond issue for the 13 24 fund, and all other expenditures of the board necessary or 13 25 convenient to administer the fund. The bonds are investment 13 26 securities and negotiable instruments within the meaning of 13 27 and for purposes of the uniform commercial code. 13 28 2. Bonds issued under this section are payable solely and 13 29 only out of the moneys, assets, or revenues of the grow Iowa 13 30 values fund and any bond reserve funds established pursuant to 13 31 section 12.92, all of which may be deposited with trustees or 13 32 depositories in accordance with bond or security documents and 13 33 pledged to the payment thereof. Bonds issued under this 13 34 section shall contain on their face a statement that the bonds 13 35 do not constitute an indebtedness of the state. The treasurer 14 1 of state shall not pledge the credit or taxing power of this 14 2 state or any political subdivision of the state or make bonds 14 3 issued pursuant to this section payable out of any moneys 14 4 except those in the grow Iowa values fund. 14 5 3. The proceeds of bonds issued by the treasurer of state 14 6 and not required for immediate disbursement may be deposited 14 7 with a trustee or depository as provided in the bond documents 14 8 and invested or reinvested in any investment as directed by 14 9 the treasurer of state and specified in the trust indenture, 14 10 resolution, or other instrument pursuant to which the bonds 14 11 are issued without regard to any limitation otherwise provided 14 12 by law. 14 13 4. The bonds shall be: 14 14 a. In a form, issued in denominations, executed in a 14 15 manner, and payable over terms and with rights of redemption, 14 16 and be subject to the terms, conditions, and covenants 14 17 providing for the payment of the principal of, redemption 14 18 premiums, if any, interest which may be fixed or variable 14 19 during any period the bonds are outstanding, and such other 14 20 terms and conditions as prescribed in the trust indenture, 14 21 resolution, or other instrument authorizing their issuance. 14 22 b. Negotiable instruments under the laws of the state and 14 23 may be sold at prices, at public or private sale, and in a 14 24 manner, as prescribed by the treasurer of state. Chapters 14 25 73A, 74, 74A, and 75 do not apply to the sale or issuance of 14 26 the bonds. 14 27 c. Subject to the terms, conditions, and covenants 14 28 providing for the payment of the principal, redemption 14 29 premiums, if any, interest, and other terms, conditions, 14 30 covenants, and protective provisions safeguarding payment, not 14 31 inconsistent with this section and as determined by the trust 14 32 indenture, resolution, or other instrument authorizing their 14 33 issuance. 14 34 5. The bonds are securities in which public officers and 14 35 bodies of this state, political subdivisions of this state, 15 1 insurance companies and associations and other persons 15 2 carrying on an insurance business, banks, trust companies, 15 3 savings associations, savings and loan associations, and 15 4 investment companies; administrators, guardians, executors, 15 5 trustees, and other fiduciaries; and other persons authorized 15 6 to invest in bonds or other obligations of the state may 15 7 properly and legally invest funds, including capital, in their 15 8 control or belonging to them. 15 9 6. Bonds must be authorized by a trust indenture, 15 10 resolution, or other instrument of the treasurer of state. 15 11 7. Neither the resolution, trust indenture, nor any other 15 12 instrument by which a pledge is created needs to be recorded 15 13 or filed under the Iowa uniform commercial code to be valid, 15 14 binding, or effective. 15 15 8. Bonds issued under the provisions of this section are 15 16 declared to be issued for a general public and governmental 15 17 purpose and all bonds issued under this section shall be 15 18 exempt from taxation by the state of Iowa and the interest on 15 19 the bonds shall be exempt from the state income tax and the 15 20 state inheritance and estate tax. 15 21 9. Subject to the terms of any bond documents, moneys in 15 22 the grow Iowa values fund may be expended for administration 15 23 expenses. 15 24 10. The treasurer of state may issue bonds for the purpose 15 25 of refunding any bonds issued pursuant to this section then 15 26 outstanding, including the payment of any redemption premiums 15 27 thereon and any interest accrued or to accrue to the date of 15 28 redemption of the outstanding bonds. Until the proceeds of 15 29 bonds issued for the purpose of refunding outstanding bonds 15 30 are applied to the purchase or retirement of outstanding bonds 15 31 or the redemption of outstanding bonds, the proceeds may be 15 32 placed in escrow and be invested and reinvested in accordance 15 33 with the provisions of this section. The interest, income, 15 34 and profits earned or realized on an investment may also be 15 35 applied to the payment of the outstanding bonds to be refunded 16 1 by purchase, retirement, or redemption. After the terms of 16 2 the escrow have been fully satisfied and carried out, any 16 3 balance of proceeds and interest earned or realized on the 16 4 investments may be returned to the treasurer of state for 16 5 deposit in the grow Iowa values fund established in section 16 6 15G.108. All refunding bonds shall be issued and secured and 16 7 subject to the provisions of this chapter in the same manner 16 8 and to the same extent as other bonds issued pursuant to this 16 9 section. 16 10 11. The treasurer of state shall have all of the powers 16 11 which are necessary to issue and secure bonds, including but 16 12 not limited to the power to procure insurance, other credit 16 13 enhancements, and other financing arrangements, and to execute 16 14 instruments and contracts and to enter into agreements 16 15 convenient or necessary to facilitate financing arrangements 16 16 with respect to the bonds and to carry out the purposes of the 16 17 fund, including but not limited to such arrangements, 16 18 instruments, contracts, and agreements as municipal bond 16 19 insurance, self-insurance or liquidity trusts, accounts, pools 16 20 or other arrangements, liquidity facilities or covenants, 16 21 letters of credit, and interest rate agreements. 16 22 12. For purposes of this section and sections 12.92 16 23 through 12.95, the term "bonds" means bonds, notes, and other 16 24 obligations and financing arrangements issued or entered into 16 25 by the treasurer of state and the term "interest rate 16 26 agreement" means an interest rate swap or exchange agreement, 16 27 an agreement establishing an interest rate floor or ceiling or 16 28 both, or any similar agreement. Any such agreement may 16 29 include the option to enter into or cancel the agreement or to 16 30 reverse or extend the agreement. 16 31 Sec. 21. NEW SECTION. 12.92 GROW IOWA VALUES FUND 16 32 ACCOUNTS AND RESERVE FUNDS. 16 33 1. The treasurer of state shall establish such accounts 16 34 within the grow Iowa values fund created in section 15G.108 as 16 35 may be appropriate, including debt service accounts for the 17 1 purpose of paying the principal of, redemption premium, if 17 2 any, and interest on bonds payable therefrom. Moneys in the 17 3 debt service accounts shall not be subject to appropriation 17 4 for any other purpose by the general assembly, but shall be 17 5 used only for the purposes of paying the principal of, 17 6 redemption premium, if any, and interest on the bonds payable 17 7 therefrom. 17 8 2. Revenue for the grow Iowa values fund shall include, 17 9 but is not limited to, the following, which shall be deposited 17 10 with the treasurer of state or its designee as provided by any 17 11 bond or security documents and credited to the debt service 17 12 account: 17 13 a. The proceeds of bonds issued to capitalize and pay the 17 14 costs of the fund and investment earnings on the proceeds. 17 15 b. Interest attributable to investment of moneys in the 17 16 fund or an account of the fund. 17 17 c. Moneys in the form of a devise, gift, bequest, 17 18 donation, federal or other grant, reimbursement, repayment, 17 19 judgment, transfer, payment, or appropriation from any source 17 20 intended to be used for the purposes of the fund or account. 17 21 3. a. The treasurer of state may create and establish one 17 22 or more special funds, to be known as "bond reserve funds", to 17 23 secure one or more issues of bonds issued pursuant to section 17 24 12.91. The treasurer of state shall pay into each bond 17 25 reserve fund any moneys appropriated and made available by the 17 26 state or treasurer of state for the purpose of the fund, any 17 27 proceeds of sale of bonds to the extent provided in the 17 28 resolutions or trust indentures authorizing their issuance, 17 29 and any other moneys which may be available to the treasurer 17 30 of state for the purpose of the fund from any other sources. 17 31 All moneys held in a bond reserve fund, except as otherwise 17 32 provided in this chapter, shall be used as required solely for 17 33 the payment of the principal of bonds secured in whole or in 17 34 part by the fund or of the sinking fund payments with respect 17 35 to the bonds, the purchase or redemption of the bonds, the 18 1 payment of interest on the bonds, or the payments of any 18 2 redemption premium required to be paid when the bonds are 18 3 redeemed prior to maturity. 18 4 b. Moneys in a bond reserve fund shall not be withdrawn 18 5 from it at any time in an amount that will reduce the amount 18 6 of the fund to less than the bond reserve fund requirement 18 7 established for the fund, as provided in this subsection, 18 8 except for the purpose of making, with respect to bonds 18 9 secured in whole or in part by the fund, payment when due of 18 10 principal, interest, redemption premiums, and the sinking fund 18 11 payments with respect to the bonds for the payment of which 18 12 other moneys of the treasurer of state are not available. 18 13 Any income or interest earned by, or incremental to, a bond 18 14 reserve fund due to the investment of it may be transferred by 18 15 the treasurer of state to other funds or accounts to the 18 16 extent the transfer does not reduce the amount of that bond 18 17 reserve fund below the bond reserve fund requirement for it. 18 18 c. The treasurer of state shall not at any time issue 18 19 bonds, secured in whole or in part by a bond reserve fund, if, 18 20 upon the issuance of the bonds, the amount in the bond reserve 18 21 fund will be less than the bond reserve fund requirement for 18 22 the fund, unless the treasurer of state at the time of 18 23 issuance of the bonds deposits in the fund from the proceeds 18 24 of the bonds issued or from other sources an amount which, 18 25 together with the amount then in the fund, will not be less 18 26 than the bond reserve fund requirement for the fund. For the 18 27 purposes of this subsection, the term "bond reserve fund 18 28 requirement" means, as of any particular date of computation, 18 29 an amount of money, as provided in the resolutions or trust 18 30 indentures authorizing the bonds with respect to which the 18 31 fund is established. 18 32 d. To assure the continued solvency of any bonds secured 18 33 by the bond reserve fund, provision is made in paragraph "a" 18 34 for the accumulation in each bond reserve fund of an amount 18 35 equal to the bond reserve requirement for the fund. In order 19 1 to further assure maintenance of the bond reserve funds, the 19 2 treasurer of state shall, on or before January 1 of each 19 3 calendar year, make and deliver to the governor the treasurer 19 4 of state's certificate stating the sum, if any, required to 19 5 restore each bond reserve fund to the bond reserve fund 19 6 requirement for that fund. Within thirty days after the 19 7 beginning of the session of the general assembly next 19 8 following the delivery of the certificate, the governor shall 19 9 submit to both houses printed copies of a budget including the 19 10 sum, if any, required to restore each bond reserve fund to the 19 11 bond reserve fund requirement for that fund. Any sums 19 12 appropriated by the general assembly and paid to the treasurer 19 13 of state pursuant to this subsection shall be deposited by the 19 14 treasurer of state in the applicable bond reserve fund. 19 15 Sec. 22. NEW SECTION. 12.93 PLEDGES. 19 16 1. It is the intention of the general assembly that a 19 17 pledge made in respect of bonds shall be valid and binding 19 18 from the time the pledge is made, that the moneys or property 19 19 so pledged and received after the pledge by the treasurer of 19 20 state shall immediately be subject to the lien of the pledge 19 21 without physical delivery or further act, and that the lien of 19 22 the pledge shall be valid and binding as against all parties 19 23 having claims of any kind in tort, contract, or otherwise 19 24 against the treasurer of state whether or not the parties have 19 25 notice of the lien. 19 26 2. The moneys set aside in a fund or funds pledged for any 19 27 series or issue of bonds shall be held for the sole benefit of 19 28 the series or issue separate and apart from moneys pledged for 19 29 another series or issue of bonds of the treasurer of state. 19 30 Bonds may be issued in series under one or more resolutions or 19 31 trust indentures and may be fully open-ended, thus providing 19 32 for the unlimited issuance of additional series, or partially 19 33 open-ended, limited as to additional series. 19 34 Sec. 23. NEW SECTION. 12.94 LIMITATIONS. 19 35 Bonds issued pursuant to section 12.91 are not debts of the 20 1 state, or of any political subdivision of the state, and do 20 2 not constitute a pledge of the faith and credit of the state 20 3 or a charge against the general credit or general fund of the 20 4 state. The issuance of any bonds pursuant to section 12.91 by 20 5 the treasurer of state does not directly, indirectly, or 20 6 contingently obligate the state or a political subdivision of 20 7 the state to apply moneys, or to levy or pledge any form of 20 8 taxation whatever, to the payment of the bonds. Bonds issued 20 9 under section 12.91 are payable solely and only from the 20 10 sources and special fund and accounts provided in section 20 11 12.92. 20 12 Sec. 24. NEW SECTION. 12.95 CONSTRUCTION. 20 13 Sections 12.91 through 12.94, being necessary for the 20 14 welfare of this state and its inhabitants, shall be liberally 20 15 construed to effect its purposes. 20 16 Sec. 25. Section 15G.108, Code Supplement 2003, is amended 20 17 to read as follows: 20 18 15G.108 GROW IOWA VALUES FUND. 20 19 A grow Iowa values fund is created and established as a 20 20 separate and distinct fund in the state treasuryunder the20 21control of the grow Iowa values board consisting of moneys20 22appropriated to the grow Iowa values board. Moneys in the 20 23 fund are not subject to section 8.33. Notwithstanding section 20 24 12C.7, interest or earnings on moneys in the fund shall be 20 25 credited to the fund. Moneys in the fund shall not be subject 20 26 to appropriation for any other purposes by the general 20 27 assembly other than as provided in this Act and 2003 Iowa 20 28 Acts, First Extraordinary Session, chapter 2, but shall be 20 29 used only for the purposes of the grow Iowa values fund. The 20 30 treasurer of state shall act as custodian of the fund and 20 31 disburse moneys contained in the fund as directed by the grow 20 32 Iowa values board, including automatic disbursements of moneys 20 33 received pursuant to the terms of bond indentures and 20 34 documents and security provisions to trustees. The fund shall 20 35 be administered by the grow Iowa values board, which shall 21 1 make expenditures from the fund consistent with this chapter 21 2 and pertinent Acts of the general assembly. Any financial 21 3 assistance provided using moneys from the fund may be provided 21 4 over a period of time of more than one year. Payments of 21 5 interest, repayments of moneys loaned pursuant to this 21 6 chapter, and recaptures of grants or loans shall be deposited 21 7 in the fund. 21 8 Sec. 26. Section 15G.110, Code Supplement 2003, is amended 21 9 to read as follows: 21 10 15G.110 FUTURE CONSIDERATION. 21 11 Not later than February 1, 2007, the legislative services 21 12 agency shall prepare and deliver to the secretary of the 21 13 senate and the chief clerk of the house of representatives 21 14 identical divisions that repeal the provisions of this 21 15 chapter, with the exception of sections 15G.101, 15G.102, 21 16 15G.103, and 15G.108. It is the intent of this section that 21 17 the general assembly shall bring the division to a vote in 21 18 either the senate or the house of representatives 21 19 expeditiously. It is further the intent of this chapter that 21 20 if the division is approved by the first house in which it is 21 21 considered, it shall expeditiously be brought to a vote in the 21 22 second house. 21 23 Sec. 27. Section 99G.39, subsection 3, paragraph a, Code 21 24 Supplement 2003, is amended to read as follows: 21 25 a. Notwithstanding subsection 1, if gaming revenues under 21 26 sections 99D.17 and 99F.11 are insufficient in a fiscal year 21 27 to meet the total amount of such revenues directed to be 21 28 deposited in the grow Iowa values fund, the vision Iowa fund, 21 29 and the school infrastructure fund during the fiscal year 21 30 pursuant to section 8.57, subsection 5, paragraph "e", the 21 31 difference shall be paid from lottery revenues prior to 21 32 deposit of the lottery revenues in the general fund. If 21 33 lottery revenues are insufficient during the fiscal year to 21 34 pay the difference, the remaining difference shall be paid 21 35 from lottery revenues in subsequent fiscal years as such 22 1 revenues become available. 22 2 Sec. 28. 2003 Iowa Acts, First Extraordinary Session, 22 3 chapter 1, section 114, is amended to read as follows: 22 4 SEC. 114. The divisions of this Act designated the grow 22 5 Iowa values board and fund, with the exception of sections 22 6 15G.101, 15G.102, 15G.103, and 15G.108, Code Supplement 2003, 22 7 the value-added agricultural products and processes financial 22 8 assistance program, the endow Iowa grants, the technology 22 9 transfer advisors, the Iowa economic development loan and 22 10 credit guarantee fund, the economic development assistance and 22 11 data collection, the cultural and entertainment districts, the 22 12 workforce issues, and the university-based research 22 13 utilization program, are repealed effective June 30, 2010. 22 14 Sec. 29. 2003 Iowa Acts, First Extraordinary Session, 22 15 chapter 2, section 75, subsection 1, is amended to read as 22 16 follows: 22 17 1. There is appropriated from the general fund of the 22 18 state from moneys credited to the general fund of the state as 22 19 a result of entering into the streamlined sales and use tax 22 20 agreement, for the fiscalperiodyear beginning July 1, 2003, 22 21 and ending June 30,20102004, the followingamountsamount to 22 22 be used for the purpose designated: 22 23 For deposit in the grow Iowa values fund created in section 22 2415G.107, if enacted by 2003 Iowa Acts, House File 692 or22 25another Act15G.108: 22 26 FY 2003-2004...................................... $ 5,000,000 22 27FY 2004-2005...................................... $ 23,000,00022 28FY 2005-2006...................................... $ 75,000,00022 29FY 2006-2007...................................... $ 75,000,00022 30FY 2007-2008...................................... $ 75,000,00022 31FY 2008-2009...................................... $ 75,000,00022 32FY 2009-2010...................................... $ 75,000,00022 33 EXPLANATION 22 34 This bill relates to economic development and regulatory 22 35 matters at the state and local level and makes appropriations. 23 1 DIVISION I. This division establishes a regulatory 23 2 efficiency commission for purposes of identifying unneeded 23 3 regulations, fines, and fees that hinder business development. 23 4 The division provides that the commission shall also identify 23 5 methods for streamlining access to regulatory information. 23 6 The division provides that the commission shall consist of 23 7 seven voting members appointed by the governor and four 23 8 nonvoting ex officio members of the general assembly. The 23 9 division provides that the meetings of the commission are 23 10 subject to open meetings laws. The division provides that, by 23 11 January 10, 2005, the commission shall submit a written report 23 12 to the governor and the general assembly that includes the 23 13 findings and legislative recommendations of the commission. 23 14 The division provides that the report shall be distributed by 23 15 the secretary of the senate and the chief clerk of the house 23 16 of representatives to the chairpersons and members of the 23 17 administrative rules review committee and the economic growth 23 18 committees in the senate and the house of representatives. 23 19 DIVISION II. This division establishes a partnership 23 20 commission for purposes of identifying unnecessary public 23 21 mandates for elimination and providing recommendations 23 22 designed to encourage city and county governments to share 23 23 services. The division provides that the commission shall 23 24 consist of seven voting members appointed by the governor and 23 25 four nonvoting ex officio members of the general assembly. 23 26 The division provides that the meetings of the commission are 23 27 subject to open meetings laws. The division provides that, by 23 28 January 10, 2005, the commission shall submit a written report 23 29 to the governor and the general assembly that includes the 23 30 findings and legislative recommendations of the commission. 23 31 The division provides that the report shall be distributed by 23 32 the secretary of the senate and the chief clerk of the house 23 33 of representatives to the chairpersons and members of the 23 34 administrative rules review committee and the state government 23 35 committees in the senate and the house of representatives. 24 1 DIVISION III. This division provides that in order for an 24 2 economic development region to receive moneys from the grow 24 3 Iowa values fund, the organization of the economic development 24 4 region must be approved by the grow Iowa values board. The 24 5 division provides that the board shall approve an economic 24 6 development region that consists of not less than three 24 7 contiguous counties and establishes a single, focused economic 24 8 development effort, approved by the board, that shall include 24 9 the development of a regional development plan and regional 24 10 marketing strategies. The division provides that an approved 24 11 economic development region may create an economic development 24 12 region revolving fund. 24 13 The division provides that a nongovernmental entity making 24 14 a contribution to an economic development region revolving 24 15 fund at any time prior to July 1, 2009, may claim a tax credit 24 16 equal to 20 percent of the amount contributed to the revolving 24 17 fund. The tax credit shall be allowed against personal and 24 18 corporate income tax, the franchise tax for financial 24 19 institutions, the insurance premium tax, and the moneys and 24 20 credits tax for credit unions. The division provides that any 24 21 tax credit in excess of the taxpayer's liability for the tax 24 22 year may be credited to the tax liability for the following 24 23 seven years or until depleted, whichever occurs first. The 24 24 division provides that the tax credit shall not be carried 24 25 back to a tax year prior to the tax year in which the taxpayer 24 26 redeems the tax credit and is not transferable. The division 24 27 provides that the aggregate amount of tax credits authorized 24 28 shall not total more than $20 million. The division provides 24 29 that the total amount of tax credits authorized during a 24 30 fiscal year shall not exceed $4 million plus any unused tax 24 31 credits carried over from previous years. Any tax credits 24 32 which remain unused for a fiscal year may be carried forward 24 33 to the succeeding fiscal year. The division provides that the 24 34 maximum amount of tax credits that may be authorized in a 24 35 fiscal year for contributions made to a specific economic 25 1 development region revolving fund is equal to $4 million plus 25 2 any unused tax credits carried over from previous years 25 3 divided by the number of economic development region revolving 25 4 funds existing in the state. The tax credit provisions are 25 5 retroactively applicable to January 1, 2004, and are 25 6 applicable on and after that date. 25 7 The division provides that an approved economic development 25 8 region may apply for financial assistance from the grow Iowa 25 9 values fund to assist with physical infrastructure needs 25 10 related to a specific business partner. The division provides 25 11 that an approved economic development region may apply for 25 12 financial assistance from the grow Iowa values fund to assist 25 13 an existing business located in the economic development 25 14 region impacted by business consolidation actions. The 25 15 division provides that an approved economic development region 25 16 may apply for financial assistance to implement economic 25 17 development initiatives unique to the region. The division 25 18 provides that an approved economic development region may 25 19 apply for financial assistance to implement innovative 25 20 initiatives that do not qualify for other financial assistance 25 21 from the fund. The division requires the grow Iowa values 25 22 board to establish and administer a regional economic 25 23 development revenue sharing pilot project for one or more 25 24 regions. The division provides that direct financial 25 25 assistance under this section and the next seciton of the 25 26 division shall total not more than $20 million. 25 27 The division provides that an approved economic development 25 28 region may apply to the grow Iowa values board for approval as 25 29 an economically isolated area. In order to be considered an 25 30 economically isolated area, the region must have at least one 25 31 county that has a majority of the land area of the county 25 32 located at least 40 miles away from a major commercial area, 25 33 as determined by the board, and the county has either a per 25 34 capita income that ranks in the lowest 25 counties in the 25 35 state based on the 2000 census or has an annualized average 26 1 weekly wage for employees in private business that ranks in 26 2 the lowest 25 counties in the state in calendar year 2000. 26 3 The division provides that an approved economically isolated 26 4 area is eligible to apply to the department of economic 26 5 development for up to $750,000 over a five-year period for 26 6 purposes of economic-development-related marketing assistance 26 7 for the area. 26 8 From the grow Iowa values fund, the division appropriates 26 9 to the department of economic development for the fiscal year 26 10 beginning July 1, 2004, and ending June 30, 2005, $20 million 26 11 for providing financial assistance to economic development 26 12 regions and economically isolated areas. From the grow Iowa 26 13 values fund, the division appropriates to the general fund of 26 14 the state, for the fiscal period beginning July 1, 2004, and 26 15 ending June 30, 2009, $20 million for payment of economic 26 16 development region revolving fund tax credits. 26 17 DIVISION IV. This division makes appropriations from the 26 18 grow Iowa values fund. 26 19 The division appropriates from the grow Iowa values fund to 26 20 the general fund of the state for the fiscal period beginning 26 21 July 1, 2004, and ending June 30, 2006, $1.5 million each 26 22 fiscal year for payment of tax credits approved for projects 26 23 located in certified cultural and entertainment districts. 26 24 The division makes conforming amendments to Code section 26 25 404A.4. 26 26 The division appropriates from the grow Iowa values fund to 26 27 the office of the treasurer of state for the fiscal period 26 28 beginning July 1, 2004, and ending June 30, 2007, $15 million 26 29 each fiscal year for deposit in the community attraction and 26 30 tourism fund. 26 31 The division appropriates from the grow Iowa values fund to 26 32 the grow Iowa values board for the fiscal period beginning 26 33 July 1, 2004, and ending June 30, 2006, $3 million each fiscal 26 34 year for the purpose of providing financial assistance for 26 35 projects in targeted state parks and destination parks. 27 1 The division appropriates from the grow Iowa values fund to 27 2 the office of the treasurer of state for the fiscal period 27 3 beginning July 1, 2004, and ending June 30, 2006, $2 million 27 4 for deposit in the Iowa cultural trust fund. 27 5 DIVISION V. This division allows the treasurer of state to 27 6 issue bonds for the purpose of partially funding the grow Iowa 27 7 values fund. Currently, the grow Iowa values fund is funded 27 8 through certain anticipated federal moneys and an annual 27 9 appropriation from moneys credited to the general fund of the 27 10 state as a result of entering into the streamlined sales and 27 11 use tax agreement. The bill eliminates the funding from the 27 12 moneys credited to the general fund of the state as a result 27 13 of entering into a streamlined sales and use tax agreement. 27 14 The bill allows the treasurer of state to issue bonds for the 27 15 purpose of funding the grow Iowa values fund. The division 27 16 amends Code section 15G.108 relating to the grow Iowa values 27 17 fund due to the partial funding of the fund through the 27 18 issuance of bonds. 27 19 The division provides that the treasurer of state may issue 27 20 bonds in principal amounts which are necessary to provide 27 21 sufficient funds for the grow Iowa values fund, the payment of 27 22 interest on the bonds, the establishment of reserves to secure 27 23 the bonds, the costs of issuance of the bonds, other 27 24 expenditures incident to and necessary or convenient to carry 27 25 out the bond issue, and all other expenditures of the grow 27 26 Iowa values board necessary or convenient to administer the 27 27 fund. 27 28 The division provides that the bonds are payable solely and 27 29 only out of the moneys, assets, or revenues of the grow Iowa 27 30 values fund and any bond reserve funds. The division provides 27 31 that the bonds shall contain on their face a statement that 27 32 the bonds do not constitute an indebtedness of the state and 27 33 that the treasurer of state shall not pledge the credit or 27 34 taxing power of this state or any political subdivision of 27 35 this state or make the bonds payable out of any moneys except 28 1 those in the grow Iowa values fund. The division provides 28 2 that the proceeds of the bonds not required for immediate 28 3 disbursement may be deposited with a trustee or depository as 28 4 provided in the bond documents and invested or reinvested in 28 5 any investment as directed by the board and specified in the 28 6 trust indenture, resolution, or other instrument pursuant to 28 7 which the bonds are issued without regard to any limitation 28 8 otherwise provided by law. The division provides certain 28 9 requirements for the bonds, including the form of the bonds, 28 10 that the bonds must be negotiable instruments under the laws 28 11 of the state, and certain terms, conditions, and covenants for 28 12 the bonds. The division provides for who may invest in the 28 13 bonds. The division provides that the bonds must be 28 14 authorized by a trust indenture, resolution, or other 28 15 instrument of the treasurer of state approved by the board. 28 16 The division provides that neither the resolution, trust 28 17 agreement, nor any other instrument by which a pledge is 28 18 created needs to be recorded or filed under the Iowa uniform 28 19 commercial code to be valid, binding, or effective. 28 20 The division provides that the bonds are declared to be 28 21 issued for a general public and governmental purpose and all 28 22 bonds issued under the division's provisions shall be exempt 28 23 from taxation by the state of Iowa and the interest on the 28 24 bonds shall be exempt from the state income tax and the state 28 25 inheritance and estate tax. The division provides that, 28 26 subject to the terms of any bond documents, moneys in the grow 28 27 Iowa values fund may be expended for administration expenses. 28 28 The division provides that the treasurer of state may issue 28 29 bonds for the purpose of refunding any bonds or notes issued 28 30 pursuant to this section then outstanding, including the 28 31 payment of any redemption premiums thereon and any interest 28 32 accrued or to accrue to the date of redemption of the 28 33 outstanding bonds or notes. 28 34 The division requires the treasurer of state to establish 28 35 accounts within the grow Iowa values fund as may be 29 1 appropriate. The division defines what revenue for the grow 29 2 Iowa values fund shall be deposited with the treasurer of 29 3 state or the treasurer's designee as provided by any bond or 29 4 security documents and credited to the debt service account. 29 5 The division provides that the treasurer of state may create 29 6 and establish one or more special funds, to be known as "bond 29 7 reserve funds", to secure one or more issues of bonds or 29 8 notes. The division provides that moneys in a bond reserve 29 9 fund shall not be withdrawn from it at any time in an amount 29 10 that will reduce the amount of the fund to less than the bond 29 11 reserve fund requirement established for the fund, except for 29 12 the purpose of making, with respect to bonds secured in whole 29 13 or in part by the fund, payment when due of principal, 29 14 interest, redemption premiums, and the sinking fund payments 29 15 with respect to the bonds for the payment of which other 29 16 moneys of the treasurer are not available. The division 29 17 provides that the treasurer of state shall not at any time 29 18 issue bonds, secured in whole or in part by a bond reserve 29 19 fund if, upon the issuance of the bonds, the amount in the 29 20 bond reserve fund will be less than the bond reserve fund 29 21 requirement for the fund, unless the treasurer at the time of 29 22 issuance of the bonds deposits in the fund from the proceeds 29 23 of the bonds issued or from other sources an amount which, 29 24 together with the amount then in the fund, will not be less 29 25 than the bond reserve fund requirement for the fund. The 29 26 division provides for the continued solvency of any bonds 29 27 secured by a bond reserve fund. 29 28 The division provides that it is the intent of the general 29 29 assembly that a pledge made in respect of bonds or notes shall 29 30 be valid and binding from the time the pledge is made, that 29 31 the moneys or property so pledged and received after the 29 32 pledge by the treasurer of state shall immediately be subject 29 33 to the lien of the pledge without physical delivery or further 29 34 act, and that the lien of the pledge shall be valid and 29 35 binding as against all parties having claims of any kind in 30 1 tort, contract, or otherwise against the treasurer of state 30 2 whether or not the parties have notice of the lien. 30 3 The division provides that the bonds or notes are not debts 30 4 of the state, or of any political subdivision of the state, 30 5 and do not constitute a pledge of the faith and credit of the 30 6 state or a charge against the general credit or general fund 30 7 of the state. 30 8 The division also amends a provision in Code section 8.57, 30 9 which provides for the annual deposit of gambling revenues in 30 10 the general fund of the state and other funds. Currently, the 30 11 first $60 million of gambling revenues is deposited in the 30 12 general fund of the state and the remaining moneys are 30 13 deposited in the vision Iowa fund, the school infrastructure 30 14 fund, and the rebuild Iowa infrastructure fund. The division 30 15 provides that for the fiscal period beginning July 1, 2004, 30 16 and ending June 30, 2030, $21.7 million will be deposited in 30 17 the general fund of the state, $38.3 million will be deposited 30 18 in the grow Iowa values fund, and the deposits for the vision 30 19 Iowa fund, the school infrastructure fund, and the rebuild 30 20 Iowa infrastructure fund remain unchanged. The deposits 30 21 return to the manner in which they are currently distributed 30 22 in the fiscal year beginning July 1, 2030. The division 30 23 provides that if gambling revenues directed to be deposited in 30 24 the grow Iowa values fund, the vision Iowa fund, and the 30 25 school infrastructure fund are insufficient to fully fund the 30 26 required deposits in a fiscal year, the difference shall be 30 27 paid from lottery revenues. 30 28 LSB 6043YH 80 30 29 tm/sh/8.1
Text: HF02438 Text: HF02440 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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