House Amendment 1558
PAG LIN
1 1 Amend House File 683 as follows:
1 2 #1. Page 1, by striking line 2 and inserting the
1 3 following: <IOWA VALUES BOARD AND FUND == BONDING
1 4 AUTHORITY
1 5 Section 1. Section 8.57, subsection 5, paragraph
1 6 e, Code 2003, is amended to read as follows:
1 7 e. Notwithstanding provisions to the contrary in
1 8 sections 99D.17 and 99F.11, for the fiscal year period
1 9 beginning July 1, 2000, and for each fiscal year
1 10 thereafter, 2003, and ending June 30, 2005, not more
1 11 than a total of sixty million dollars shall be
1 12 deposited in the general fund of the state in any
1 13 fiscal year pursuant to sections 99D.17 and 99F.11;
1 14 for the fiscal period beginning July 1, 2005, and
1 15 ending June 30, 2030, not more than a total of sixty
1 16 million dollars of the moneys directed to be deposited
1 17 in the general fund of the state in a fiscal year
1 18 pursuant to sections 99D.17 and 99F.11 shall be
1 19 deposited in the Iowa values fund created in section
1 20 15G.105 in any fiscal year; and for the fiscal year
1 21 beginning July 1, 2030, and for each fiscal year
1 22 thereafter, not more than a total of sixty million
1 23 dollars shall be deposited in the general fund of the
1 24 state in any fiscal year pursuant to sections 99D.17
1 25 and 99F.11. The next fifteen million dollars of the
1 26 moneys directed to be deposited in the general fund of
1 27 the state in a fiscal year pursuant to sections 99D.17
1 28 and 99F.11 shall be deposited in the vision Iowa fund
1 29 created in section 12.72 for the fiscal year beginning
1 30 July 1, 2000, and for each fiscal year through the
1 31 fiscal year beginning July 1, 2019. The next five
1 32 million dollars of the moneys directed to be deposited
1 33 in the general fund of the state in a fiscal year
1 34 pursuant to sections 99D.17 and 99F.11 shall be
1 35 deposited in the school infrastructure fund created in
1 36 section 12.82 for the fiscal year beginning July 1,
1 37 2000, and for each fiscal year thereafter until the
1 38 principal and interest on all bonds issued by the
1 39 treasurer of state pursuant to section 12.81 are paid,
1 40 as determined by the treasurer of state. The total
1 41 moneys in excess of the moneys deposited in the
1 42 general fund of the state, the Iowa values fund, the
1 43 vision Iowa fund, and the school infrastructure fund
1 44 in a fiscal year shall be deposited in the rebuild
1 45 Iowa infrastructure fund and shall be used as provided
1 46 in this section, notwithstanding section 8.60.
1 47 If the total amount of moneys directed to be
1 48 deposited in the general fund of the state under
1 49 sections 99D.17 and 99F.11 in a fiscal year is less
1 50 than the total amount of moneys directed to be
2 1 deposited in the Iowa values fund, the vision Iowa
2 2 fund, and the school infrastructure fund in the fiscal
2 3 year pursuant to this paragraph "e", the difference
2 4 shall be paid from lottery revenues in the manner
2 5 provided in section 99E.10, subsection 3.
2 6 Sec. . NEW SECTION. 12.91 GENERAL AND
2 7 SPECIFIC BONDING POWERS == IOWA VALUES PROGRAM.
2 8 1. The treasurer of state may issue bonds for the
2 9 purpose of funding the Iowa values fund created in
2 10 section 15G.105. The treasurer of state shall have
2 11 all of the powers which are necessary to issue and
2 12 secure bonds and carry out the purposes of the fund.
2 13 The treasurer of state may issue bonds in principal
2 14 amounts which are necessary to provide sufficient
2 15 funds for the Iowa values fund, the payment of
2 16 interest on the bonds, the establishment of reserves
2 17 to secure the bonds, the costs of issuance of the
2 18 bonds, other expenditures of the treasurer of state
2 19 incident to and necessary or convenient to carry out
2 20 the bond issue for the fund, and all other
2 21 expenditures of the board necessary or convenient to
2 22 administer the fund. The bonds are investment
2 23 securities and negotiable instruments within the
2 24 meaning of and for purposes of the uniform commercial
2 25 code.
2 26 2. Bonds issued under this section are payable
2 27 solely and only out of the moneys, assets, or revenues
2 28 of the Iowa values fund and any bond reserve funds
2 29 established pursuant to section 12.92, all of which
2 30 may be deposited with trustees or depositories in
2 31 accordance with bond or security documents and pledged
2 32 to the payment thereof. Bonds issued under this
2 33 section shall contain on their face a statement that
2 34 the bonds do not constitute an indebtedness of the
2 35 state. The treasurer of state shall not pledge the
2 36 credit or taxing power of this state or any political
2 37 subdivision of the state or make bonds issued pursuant
2 38 to this section payable out of any moneys except those
2 39 in the Iowa values fund.
2 40 3. The proceeds of bonds issued by the treasurer
2 41 of state and not required for immediate disbursement
2 42 may be deposited with a trustee or depository as
2 43 provided in the bond documents and invested or
2 44 reinvested in any investment as directed by the
2 45 treasurer of state and specified in the trust
2 46 indenture, resolution, or other instrument pursuant to
2 47 which the bonds are issued without regard to any
2 48 limitation otherwise provided by law.
2 49 4. The bonds shall be:
2 50 a. In a form, issued in denominations, executed in
3 1 a manner, and payable over terms and with rights of
3 2 redemption, and be subject to the terms, conditions,
3 3 and covenants providing for the payment of the
3 4 principal of, redemption premiums, if any, interest
3 5 which may be fixed or variable during any period the
3 6 bonds are outstanding, and such other terms and
3 7 conditions as prescribed in the trust indenture,
3 8 resolution, or other instrument authorizing their
3 9 issuance.
3 10 b. Negotiable instruments under the laws of the
3 11 state and may be sold at prices, at public or private
3 12 sale, and in a manner, as prescribed by the treasurer
3 13 of state. Chapters 73A, 74, 74A, and 75 do not apply
3 14 to the sale or issuance of the bonds.
3 15 c. Subject to the terms, conditions, and covenants
3 16 providing for the payment of the principal, redemption
3 17 premiums, if any, interest, and other terms,
3 18 conditions, covenants, and protective provisions
3 19 safeguarding payment, not inconsistent with this
3 20 section and as determined by the trust indenture,
3 21 resolution, or other instrument authorizing their
3 22 issuance.
3 23 5. The bonds are securities in which public
3 24 officers and bodies of this state, political
3 25 subdivisions of this state, insurance companies and
3 26 associations and other persons carrying on an
3 27 insurance business, banks, trust companies, savings
3 28 associations, savings and loan associations, and
3 29 investment companies; administrators, guardians,
3 30 executors, trustees, and other fiduciaries; and other
3 31 persons authorized to invest in bonds or other
3 32 obligations of the state, may properly and legally
3 33 invest funds, including capital, in their control or
3 34 belonging to them.
3 35 6. Bonds must be authorized by a trust indenture,
3 36 resolution, or other instrument of the treasurer of
3 37 state.
3 38 7. Neither the resolution, trust indenture, nor
3 39 any other instrument by which a pledge is created
3 40 needs to be recorded or filed under the Iowa uniform
3 41 commercial code to be valid, binding, or effective.
3 42 8. Bonds issued under the provisions of this
3 43 section are declared to be issued for a general public
3 44 and governmental purpose and all bonds issued under
3 45 this section shall be exempt from taxation by the
3 46 state of Iowa and the interest on the bonds shall be
3 47 exempt from the state income tax and the state
3 48 inheritance and estate tax.
3 49 9. Subject to the terms of any bond documents,
3 50 moneys in the Iowa values fund may be expended for
4 1 administration expenses.
4 2 10. The treasurer of state may issue bonds for the
4 3 purpose of refunding any bonds issued pursuant to this
4 4 section then outstanding, including the payment of any
4 5 redemption premiums thereon and any interest accrued
4 6 or to accrue to the date of redemption of the
4 7 outstanding bonds. Until the proceeds of bonds issued
4 8 for the purpose of refunding outstanding bonds are
4 9 applied to the purchase or retirement of outstanding
4 10 bonds or the redemption of outstanding bonds, the
4 11 proceeds may be placed in escrow and be invested and
4 12 reinvested in accordance with the provisions of this
4 13 section. The interest, income, and profits earned or
4 14 realized on an investment may also be applied to the
4 15 payment of the outstanding bonds to be refunded by
4 16 purchase, retirement, or redemption. After the terms
4 17 of the escrow have been fully satisfied and carried
4 18 out, any balance of proceeds and interest earned or
4 19 realized on the investments may be returned to the
4 20 treasurer of state for deposit in the Iowa values fund
4 21 established in section 15G.105. All refunding bonds
4 22 shall be issued and secured and subject to the
4 23 provisions of this chapter in the same manner and to
4 24 the same extent as other bonds issued pursuant to this
4 25 section.
4 26 11. The treasurer of state shall have all of the
4 27 powers which are necessary to issue and secure bonds,
4 28 including but not limited to the power to procure
4 29 insurance, other credit enhancements, and other
4 30 financing arrangements, and to execute instruments and
4 31 contracts and to enter into agreements convenient or
4 32 necessary to facilitate financing arrangements with
4 33 respect to the bonds and to carry out the purposes of
4 34 the fund, including but not limited to such
4 35 arrangements, instruments, contracts, and agreements
4 36 as municipal bond insurance, self=insurance or
4 37 liquidity trusts, accounts, pools or other
4 38 arrangements, liquidity facilities or covenants,
4 39 letters of credit, and interest rate agreements.
4 40 12. For purposes of this section and sections
4 41 12.92 through 12.95, the term "bonds" means bonds,
4 42 notes, and other obligations and financing
4 43 arrangements issued or entered into by the treasurer
4 44 of state and the term "interest rate agreement" means
4 45 an interest rate swap or exchange agreement, an
4 46 agreement establishing an interest rate floor or
4 47 ceiling or both, or any similar agreement. Any such
4 48 agreement may include the option to enter into or
4 49 cancel the agreement or to reverse or extend the
4 50 agreement.
5 1 Sec. . NEW SECTION. 12.92 IOWA VALUES FUND
5 2 ACCOUNTS AND RESERVE FUNDS.
5 3 1. The treasurer of state shall establish such
5 4 accounts within the Iowa values fund created in
5 5 section 15G.105 as may be appropriate, including debt
5 6 service accounts for the purpose of paying the
5 7 principal of, redemption premium, if any, and interest
5 8 on bonds payable therefrom. Moneys in the debt
5 9 service accounts shall not be subject to appropriation
5 10 for any other purpose by the general assembly, but
5 11 shall be used only for the purposes of paying the
5 12 principal of, redemption premium, if any, and interest
5 13 on the bonds payable therefrom.
5 14 2. Revenue for the Iowa values fund shall include,
5 15 but is not limited to, the following, which shall be
5 16 deposited with the treasurer of state or its designee
5 17 as provided by any bond or security documents and
5 18 credited to the debt service account:
5 19 a. The proceeds of bonds issued to capitalize and
5 20 pay the costs of the fund and investment earnings on
5 21 the proceeds.
5 22 b. Interest attributable to investment of moneys
5 23 in the fund or an account of the fund.
5 24 c. Moneys in the form of a devise, gift, bequest,
5 25 donation, federal or other grant, reimbursement,
5 26 repayment, judgment, transfer, payment, or
5 27 appropriation from any source intended to be used for
5 28 the purposes of the fund or account.
5 29 3. a. The treasurer of state may create and
5 30 establish one or more special funds, to be known as
5 31 "bond reserve funds", to secure one or more issues of
5 32 bonds issued pursuant to section 12.91. The treasurer
5 33 of state shall pay into each bond reserve fund any
5 34 moneys appropriated and made available by the state or
5 35 treasurer of state for the purpose of the fund, any
5 36 proceeds of sale of bonds to the extent provided in
5 37 the resolutions or trust indentures authorizing their
5 38 issuance, and any other moneys which may be available
5 39 to the treasurer of state for the purpose of the fund
5 40 from any other sources. All moneys held in a bond
5 41 reserve fund, except as otherwise provided in this
5 42 chapter, shall be used as required solely for the
5 43 payment of the principal of bonds secured in whole or
5 44 in part by the fund or of the sinking fund payments
5 45 with respect to the bonds, the purchase or redemption
5 46 of the bonds, the payment of interest on the bonds, or
5 47 the payments of any redemption premium required to be
5 48 paid when the bonds are redeemed prior to maturity.
5 49 b. Moneys in a bond reserve fund shall not be
5 50 withdrawn from it at any time in an amount that will
6 1 reduce the amount of the fund to less than the bond
6 2 reserve fund requirement established for the fund, as
6 3 provided in this subsection, except for the purpose of
6 4 making, with respect to bonds secured in whole or in
6 5 part by the fund, payment when due of principal,
6 6 interest, redemption premiums, and the sinking fund
6 7 payments with respect to the bonds for the payment of
6 8 which other moneys of the treasurer of state are not
6 9 available.
6 10 Any income or interest earned by, or incremental
6 11 to, a bond reserve fund due to the investment of it
6 12 may be transferred by the treasurer of state to other
6 13 funds or accounts to the extent the transfer does not
6 14 reduce the amount of that bond reserve fund below the
6 15 bond reserve fund requirement for it.
6 16 c. The treasurer of state shall not at any time
6 17 issue bonds, secured in whole or in part by a bond
6 18 reserve fund, if, upon the issuance of the bonds, the
6 19 amount in the bond reserve fund will be less than the
6 20 bond reserve fund requirement for the fund, unless the
6 21 treasurer of state at the time of issuance of the
6 22 bonds deposits in the fund from the proceeds of the
6 23 bonds issued or from other sources an amount which,
6 24 together with the amount then in the fund, will not be
6 25 less than the bond reserve fund requirement for the
6 26 fund. For the purposes of this subsection, the term
6 27 "bond reserve fund requirement" means, as of any
6 28 particular date of computation, an amount of money, as
6 29 provided in the resolutions or trust indentures
6 30 authorizing the bonds with respect to which the fund
6 31 is established.
6 32 d. To assure the continued solvency of any bonds
6 33 secured by the bond reserve fund, provision is made in
6 34 paragraph "a" for the accumulation in each bond
6 35 reserve fund of an amount equal to the bond reserve
6 36 requirement for the fund. In order to further assure
6 37 maintenance of the bond reserve funds, the treasurer
6 38 of state shall, on or before January 1 of each
6 39 calendar year, make and deliver to the governor the
6 40 treasurer of state's certificate stating the sum, if
6 41 any, required to restore each bond reserve fund to the
6 42 bond reserve fund requirement for that fund. Within
6 43 thirty days after the beginning of the session of the
6 44 general assembly next following the delivery of the
6 45 certificate, the governor shall submit to both houses
6 46 printed copies of a budget including the sum, if any,
6 47 required to restore each bond reserve fund to the bond
6 48 reserve fund requirement for that fund. Any sums
6 49 appropriated by the general assembly and paid to the
6 50 treasurer of state pursuant to this subsection shall
7 1 be deposited by the treasurer of state in the
7 2 applicable bond reserve fund.
7 3 Sec. . NEW SECTION. 12.93 PLEDGES.
7 4 1. It is the intention of the general assembly
7 5 that a pledge made in respect of bonds shall be valid
7 6 and binding from the time the pledge is made, that the
7 7 moneys or property so pledged and received after the
7 8 pledge by the treasurer of state shall immediately be
7 9 subject to the lien of the pledge without physical
7 10 delivery or further act, and that the lien of the
7 11 pledge shall be valid and binding as against all
7 12 parties having claims of any kind in tort, contract,
7 13 or otherwise against the treasurer of state whether or
7 14 not the parties have notice of the lien.
7 15 2. The moneys set aside in a fund or funds pledged
7 16 for any series or issue of bonds shall be held for the
7 17 sole benefit of the series or issue separate and apart
7 18 from moneys pledged for another series or issue of
7 19 bonds of the treasurer of state. Bonds may be issued
7 20 in series under one or more resolutions or trust
7 21 indentures and may be fully open=ended, thus providing
7 22 for the unlimited issuance of additional series, or
7 23 partially open=ended, limited as to additional series.
7 24 Sec. . NEW SECTION. 12.94 LIMITATIONS.
7 25 Bonds issued pursuant to section 12.91 are not
7 26 debts of the state, or of any political subdivision of
7 27 the state, and do not constitute a pledge of the faith
7 28 and credit of the state or a charge against the
7 29 general credit or general fund of the state. The
7 30 issuance of any bonds pursuant to section 12.91 by the
7 31 treasurer of state does not directly, indirectly, or
7 32 contingently obligate the state or a political
7 33 subdivision of the state to apply moneys, or to levy
7 34 or pledge any form of taxation whatever, to the
7 35 payment of the bonds. Bonds issued under section
7 36 12.91 are payable solely and only from the sources and
7 37 special fund and accounts provided in section 12.92.
7 38 Sec. . NEW SECTION. 12.95 CONSTRUCTION.
7 39 Sections 12.91 through 12.94, being necessary for
7 40 the welfare of this state and its inhabitants, shall
7 41 be liberally construed to effect its purposes.>
7 42 #2. Page 5, by striking lines 9 through 13 and
7 43 inserting the following:
7 44 <An Iowa values fund is created and established as
7 45 a separate and distinct fund in the state treasury.
7 46 Moneys in the fund shall not be subject to
7 47 appropriation for any other purposes by the general
7 48 assembly, other than as provided in this Act, but
7 49 shall be used only for the purposes of the Iowa values
7 50 fund. The treasurer of state shall act as custodian
8 1 of the fund and disburse moneys contained in the fund
8 2 as directed by the Iowa values board, including
8 3 automatic disbursements of funds received pursuant to
8 4 the terms of bond indentures and documents and
8 5 security provisions to trustees. The fund shall be
8 6 administered by the Iowa values board, which shall
8 7 make expenditures from the fund consistent with the
8 8 purposes of this Act without further appropriation.
8 9 Payments of interest, repayments of>.
8 10 #3. Title page, line 2, by inserting after the
8 11 word <fund,> the following: <providing for the
8 12 issuance of tax=exempt bonds,>.
8 13 #4. By renumbering as necessary.
8 14
8 15
8 16
8 17 HOFFMAN of Crawford
8 18 HF 683.718 80
8 19 tm/cl
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